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Unit-15 Manufacturing Account

This unit discusses how to ascertain the cost of goods produced and how to prepare the Manufacturing and Trading Accounts.

How do you deal with the following items in the Final Accounts of a manufacturer? Explain the nature of each item. State whether it is debited or credited to the Manufacturing Account or the Trading Account.

a)Coal, Gas and Water

b)Dock Dues and Clearing Charges

c)Work-in-Progress

d)Purchases of Finished Goods

e)Purchases Returns of Raw Materials

f)Sales Returns

g)Opening and Closing Stock of Finished Goods





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Written on Jun 26, 2019 11:56:15 AM

a)Debited to the Manufacturing Account.

b)Debited to the Manufacturing Account.

c)Opening Work-in-Progress is debited to the Manufacturing Account while the closing work-in-progress is credited to the Manufacturing Account.

d)Debited to the Manufacturing Account.

e)Credited to the Trading Account.

f)Credited to the Trading Account.

g)Opening Stock is debited to the Trading Account while the Closing Stock is credited to the Trading Account.