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Manufacturing Accounts

The document outlines ABC Company's Manufacturing and Trading accounts for the year ending 31 December 20X8, detailing the calculations for raw materials consumed, prime costs, cost of production, and gross profit. It includes various expenses related to factory operations and overheads, as well as sales figures and operating expenses leading to the net profit. The accounts provide a comprehensive view of the company's financial performance in manufacturing and trading activities.

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4 views2 pages

Manufacturing Accounts

The document outlines ABC Company's Manufacturing and Trading accounts for the year ending 31 December 20X8, detailing the calculations for raw materials consumed, prime costs, cost of production, and gross profit. It includes various expenses related to factory operations and overheads, as well as sales figures and operating expenses leading to the net profit. The accounts provide a comprehensive view of the company's financial performance in manufacturing and trading activities.

Uploaded by

habibaakterfatima
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Manufacturing Accounts

ABC Company’s Manufacturing account for the year ended 31 December 20X8
£ £
Opening stock of Raw Materials xxx
(+) Purchase of Raw Materials xxx
(-) Return Out ward (xxx)
(+) Carriage inward xxx xxx
Total Raw Materials available for use xxx
(-) Stolen/ Damage/ Scrap materials (xxx)
(-) Closing stock of Raw Materials (xxx)
RAW MATERIALS CONSUMED xxx

(+) Factory Direct Labour/ Factory wages/ Manufacturing xxx


wages
(+) Factory Direct Expense:
Royalties xxx
Direct fuel and power xxx
Direct materials xxx
Any expenses with (Direct) xxx xxx
PRIME COST xxx

(+) Factory Indirect/ Overhead Expense: xxx


Factory supervisor’s salary xxx
Factory rent and rates xxx
Factory insurance xxx
Factory heating and lighting xxx
Factory production manager’s salary xxx
Vehicle running expense xxx
Depreciation : Machinery xxx
Depreciation : Plant and Power xxx
Depreciation : Vehicle xxx
Any other expenses related to manufacturing xxx xxx
xxx

(+) Opening work-in-Progress xxx


(-) Closing Work-in-Progress (xxx) xxx
COST OF PRODUCTION xxx
When Vehicles is used to carry raw materials, then both depreciation on vehicles and running
cost are treated as factory overhead expenses in manufacturing account
ABC Company’s Trading and profit & Loss account for the year ended 31 December 20 X 8
£ £ £
Sales xxx
(-) Return inward/Sales Return (xxx)
xxx
(-) Cost of Goods Sold:
Opening stock of finished goods xxx
(+) Cost of Production/ Manufacturing cost xxx
xxx
(-) Closing stock of finished goods (xxx)
xxx
(+) Warehouse Expenses:
Warehouse Wages xxx
Warehouse Rent & Rates xxx
Waterhouse Heating & Lighting xxx xxx (xxx)
GROSS PROFIT xxx

(-) Operating Expenses:


Administration expenses xxx
Selling & Distribution expenses xxx
Vehicle running expense xxx
Carriage outwards xxx
Depreciation : Office furniture xxx
Depreciation : Vehicle xxx
Any expenses related to Office, Selling & xxx (xxx)
Distribution
NET PROFIT xxx

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