BASIC ACCOUNTING : MANUFACTURING ACCOUNT -

MANUFACTURING CONCERN WHICH CONVERT RAW MATERIAL INTO FINISHED GOODS IS REQUIRE TO PREPARE MANUFACTURING ACCOUNT AND THEN PREPARE TRADING A/C - PROFIT & LOSS ACCOUNT

PURPOSE :

TO ASCERTAIN COST OF GOOD MANUFACTURED 


DEBIT SIDE ITEMS

 > RAW MATERIAL COMSUMED

> DIRECT WAGES AND EXPENSES

> INDIRECT FACTORY EXPENSES ( RENT - SALARIES -LIGHTING - POWER -  
    MACHINERY REPAIR - FUEL - HEAT - DEPRECIATION  ETC )

> OPENING WIP ( WIP IS A SEMI-FINISHED OUTPUT )

> SALES OF SCRAP


CREDIT SIDE ITEMS

> CLOSING WIP

> SALES OF SCRAP

> COST OF FINISHED GOODS MANUFACTURED ( TRANSFER TO TRADING A/C )