Ans
– MANUFACTURING ACCOUNT
This account is usually prepared by manufacturing concerns
with converts the raw materials into finished goods. This account is prepared
to ascertain the cost of goods manufactured during an accounting period.
SPECIMEN:
Manufacturing Account
is prepared in the following format:
MANUFACTURING
ACCOUNT OF M/S……..
For
the year ending…….
Particulars
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Rs.
|
Particulars
|
Rs.
|
To Work in Progress (Opening)
To Raw Materials Consumed:
Op. Stock of Raw Materials
Add: Purchases of Raw Materials
Less: C. Stock of Raw Materials
To Direct Wages
To Direct Expenses
To Fuel/Power
To Freight/Carriage Inwards
To Factory Repairs
To Factory Lighting
To Factory Rent
To Factory Supervisor’s Salary
Top Stores Consumed
To Royalty based on production
To Depreciation on Plant &
Machinery
|
|
By Work in Progress (Closing)
By
By Cost of Goods Manufactured
(to be transferred to Trading A/c)
|
|