Manufacturing Account

Name of the Business

Manufacturing Account for the Year Ended 31st December 2008
Opening stock of raw material xxx.
Add : purchase of raw material xxx.
Add : carriage inwards xxx.
Less : Return outwards/P/return xxx.
Less closing stock of raw material xxx
Cost of raw material used xxx
Add: direct labor cost/ direct wages/ factory wags/ Mfg. wages xxx
Add: direct expenses ( if any) ( Royalty) xxx
Prime cost xxx
Add: F.O.H
Indirect material cost xxx.
Indirect labor cost xxx.
Deprecation of factory machinery/ building xxx.
Rent of factory building xxx.
Fuel expenses xxx
Utility bills of factory xxx
Repair and maintenance of factory xxx
Loose tools expenses (opening stock + purchases – closing stock) xxx
Insurance of factory machinery / building xxx

Total factory cost/ total manufacturing cost xxx

Add: Opening work in progress xxx
Less: Closing work in progress xxx
Production cost xxx
Add : factory profit or manufacturing profit ( loss) xxx
Transfer value xxx
TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 19X5
£ £
Sale xxx
Less return inwards /sale returns xxx
Net sale xxx
Less cost of goods sold
Opening stock of finished goods xxx
Production cost/Transfer value xxx
Less closing stock of finished goods xxx xxx
Gross profit xxx
Add discount received / rent received xxx
xxx
Less: expenses
Rent xxx
Salaries xxx
Wages xxx
Insurance xxx
Advertising xxx
Carriage outwards xxx
Repair and maintenance xxx
Bad debts xxx
Increase in Provision for bad debts xxx
Van running cost xxx
Fuel expenses xxx xxx
Profit on Trading xxx
Add: factory profit xxx
Less: Increase in Provision foe unrealized profit xxx xxx
Net profit / Net loss xxx
Balance sheet
Current assets
Stock of raw material (closing) xxx
Work in progress (closing) xxx
Finished goods (closing) xxx