Manufacturing Account

In case of manufacturing or construction company, we make manufacturing account before making trading account because with this account we can calculate the cost of production. In simple words, manufacturing account shows net cost of production after adjusting opening stock of raw material and purchase of it with closing stock of raw material.  It is known as production account. We show opening stock of raw material and work in progress, purchase of raw material and expenses relating to production in the debit side of manufacturing account. In the credit side we show sale of scrap and closing stock of raw material and work in progress. Difference of debit and credit will be cost of production which will be shown in the credit side of manufacturing account and will be transferred to the debit side of trading account.

Manufacturing account is made on the basis of following formula

Opening stock of raw material ---------XXXX

Add purchase of raw material ----------XXXX

-------------------------------------------------
   -------------------------------------- XXXX

Less return of raw material --------------XXXX
-----------------------------------------------

------------------------------------- ---XXXX

Add Opening stock of
work in progress -----------------------XXXX

Add Direct Expenses on production --- XXXX

_____________________________________

---------------------------------------- XXXX

Less closing stock of Raw material----- XXXX

Less closing stock of work in
progress ------------------------------XXXX

---------------------------------------------------

Cost of Production  -------------------XXXX

______________________________________
.
Name

"accounting software" "cost accountant" "financial management" account accountant accounting accounting education accounting format accounting glossary accounting questions accounting software ad advertising american express answer auditing b.com balance sheet bank bba BCA bonus business Business Dictionary CA CA- IPCC CA-CPT CA-Final capital career Category cfa children coaching company conferences Consignment Accounting contact corporate accounting cost cost accounting CPT credit card debit card debt degree depreciation dictionaries donation earning ecommerce economics education Events finance Finance Dictionary financial financial accounting financial mathematics Financial Ratios forex management free funds google google apps google talk guest writer Help Center ICWAI IFRS inspiration insurance terms interest journal entries lectures List m.com management accounting mathematics MBA MCA media mutual funds ngo notes overhead pdf pnb presentation Prof. Vinod profiles quickbooks quiz ratio rbi reporting Service Tax shares solution students tally tax teacher teaching Test Testimonials tips treasury management tutorial UGC NET Commerce video webinars Wikipedia working capital
false
ltr
item
Education of Accounting : Manufacturing Account
Manufacturing Account
Education of Accounting
http://education.svtuition.org/2010/07/manufacturing-account.html
http://education.svtuition.org/
http://education.svtuition.org/
http://education.svtuition.org/2010/07/manufacturing-account.html
true
8374141921294355176
UTF-8
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock