What is Manufacturing Account? Give a specimen of the Manufacturing Account.

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	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 Sale of Scrap By Cost of Goods Manufactured (to be transferred to Trading A/c)