in the case of manufacturing cost of goods manufactured appears on
1. cr of manufacturing account and dr of trading account
2 cr of manufacturing account and dr of profit and loss account
3 dr of manufacturing account and cr of trading account
4 dr of manufacturing account and cr of profit and loss account
MCQ of account.please give correct answer.please try it .don't write unwanted wrong answer otherwise I will block and report your account
Answers
Answer:
The manufacturing account gives information on all the expenses and costs incurred in the preparation of the goods to be sold. This includes the expenses that are met in the path of preparing the goods but not the finished goods. Any type of expenses including the cost of raw materials, the cost of machines and their maintenance, the salaries and wages of both skilled and unskilled workers which are considered as the direct expenses of the manufacturing. Even the depreciation of the assets like costly machines and plants are also included under this account. This statement of account is very important for a manufacturing firm or plant to get an idea of the total profit or loss incurred throughout the year in the total process. The effectiveness and fixing of the cost price of the finished goods are based upon the statement of the manufacturing account. The statement of the manufacturing account does not have a prescribed format. It is only important to show the quantities and values clearly.
Answer:
appears on the credit of manufacturing account and debit of trading account