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)






















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