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1	2	3	✚
4	5	6	➖
7	8	9	✖
.	0	⚌	➗
Clear		Claer all

manufacturing account details explanation

What is manufeture Account ?

Manufacturing account is an account that records only the transactions related to the company's production, It is directly linked to the trading account.

Why Need manufacture A/C ?

❮❯ To find the cost of production of goods, ❮❯
❮❯ Maintain a clear account and avoid multiple entries under one head. ❮❯

example

✵ It is same as a petty cash note : Small expenses are mentioned in the petty cash book ,That total, show on the profit & loss account

✵ manufacturing transactions are mentioned in the manufacture A/C ,That total, show on the trading account ,for Maintain A Clear Account

manufacturing account is always sub decument with trading account

how to prepar the manufacture A/C ?

manufeture A/C
particular	Amount	Amount	particular	Amount
Debit				credit
purchased raw materials	1000		scrap value	150
closing raw materials	200		closing W I P	250
raw materials consumed		800	cost of goods production	540
direct expenses		58
Transport Charges	15
Cutting Machine Charges	10
Electric Charges	18
Cutting & Fitting Expenses	15
direct labour		65
factory overhead		47
factory supervisor	10
factory insurance	12
factory electric charge	5
maintenance charges	20
Office and Administration Overheads		30
Office Rent And Rates	8
Office Lighting	12
Office Stationery	2
Office Furniture Depreciation And Repairs	5
Office Salaries	3
		940		940

trading A/C
particular	Amount	particular	Amount
Debit			credit
Cost Of Goods Production	540	sales	3000
G/P	3460	closing stock	1000
	4000		4000
n/p	3460	g/p	3460
	3460		3460

balances sheet
liability	amount	asset	amount
N/P	3460	cash	22010
capital	20000	closing stock	1450
	23460		23460

The manufacturer account is not maintained separately, how to prepare the account example

trading A/C & P/L A/C
particular	Amount	Amount	particular	Amount
Debit				credit
purchased raw materials		1000	scrap value	150
direct expanses		58	sales	3000
Transport Charges	15		closing stock	1450
Cutting Machine Charges	10		closing raw material $200
Electric Charges	18		closing W I P $250
Cutting & Fitting Expenses	15		closing finished goods $1000
direct labour		65
factory overhead		47
factory supervisor	10
factory insurance	12
factory electric charge	5
maintenance charges	20
Office and Administration Overheads		30
Office Rent And Rates	8
Office Lighting	12
Office Stationery	2
Office Furniture Depreciation And Repairs	5
Office Salaries	3
G/P		3460
		4600		4600
n/p		3460	g/p	3460
		3460		3460

balances sheet
liability	amount	asset	amount
N/P	3460	cash	22010
capital	20000	closing stock	1450
	23460		23460

Small business combines manufacturer and trading account to prepare

*important

Before you prepar the a final account( manufacturer ,trading and P/L A/C, Balance Sheet)prepare the cost sheet Because to find the closing stock and cost per unit,

Only the production cost should be recorded in the Manufeture account /List of production costs learn now

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