Manufacturing Account

Manufacturing Account is prepared to calculate

• Cost of capital

• Cost of sales

• Cost of goods sold

• Cost of production

Manufacturing Account does not include

• Direct and Indirect cost

• Prime and Factory Overhead cost

• Administrative & Selling cost

• Direct & Indirect cost

Cost of Raw Material does not include

• Opening stock of raw material

• Purchase of raw material

• Carriage on raw material

• Closing stock of raw material

Depreciation on machinery used for production is recorded in

• Prime cost

• Factory cost

• Trading expense

• Profit & Loss expense

Expense on acquiring patent is

• part of factory cost

• part of trading cost

• part of prime cost

• part of selling cost

Manufacturing business has

• 1 type of inventory

• 2 types of inventory

• 3 types of inventory

• 4 types of inventory

Work-in progress means goods which are

• partially completed

• completed

• ready for sale

• ready for packing

What is included in Trading A/C section of Manufacturing business but not in other type of business

• Purchase of finished goods

• Cost of production

• Carriage on purchase of finished goods

• Inventory of finished goods

What entry is passed for purchase of raw material

• Trade Payable Dr

• Bank Dr

• Manufacturing A/C Cr

• Manufacturing A/C Dr

Salary of factory manager is a

• Direct ecpense

• Indirect expense

• Variable expense

• Semi-variable expense