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XX XX XX Closing Stock Raw Materials Work-in-Progress Cost of the goods transferred to Trading Account XX XX Direct Materials Opening Stock: Raw Materials Work-in-Progress
XX XX XX Closing Stock Raw Materials Work-in-Progress Cost of the goods transferred to Trading Account XX XX Direct Materials Opening Stock: Raw Materials Work-in-Progress XX Purchases Raw Materials Work-in-Progress XX Carriage inwards Direct Labor Factory wages Direct Expense Factory rent ** Fuel, power, gas etc. ** Factory Insurance XX Depreciation on factory building ete ete. 2x Manufacturing over heads ** XX XX XX Preparation of manufacturing account A manufacturing account is based on the principle of national account. Therefore, it shows opening stock of work-in- progress and other direct and indirect costs of goods manufactured (i.e. factory costs) on its debit side and closing side and closing stock of work-in-progress and sale of scrap or wastage on its credit side. Generally, the balancing figure takes palace in credit side which is called "cost of goods manufactured cost of production C/D". This account show the cost production which is transferred to the trading account. h1 Manufacturing account for manufacturing profit and loss When a manufacturing account is prepared to ascertain manufacturing profit and loss, then trading value of manufacturing cost is kept in credit side instead of cost of production. In other words, all items on debit and credit side will be the same as mentioned above. But, trading price or trading value of cost of production will be shown on the credit side and balancing figure will be put on debit side of this account as "manufacturing profit" or "manufacturing loss". The accounts of Kool Kool Company Ltd. show for 20x6: Materials Rs 350,000; Labour Rs 270,000; Factory Overheads Rs 81,000 and Administration Overheads Rs 56,080
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