make a report based on the accounting books maintained by a manufacturing concern. to study the way they are maintained .
Answers
Accounting Principles IIAccounting by Manufacturing CompaniesAccounting by Manufacturing CompaniesThe accounting cycle is the same in a manufacturing company, merchandising company, and a service company. Journal entries are used to record transactions, adjusting journal entries are used to recognize costs and revenues in the appropriate period, financial statements are prepared, and closing entries are recorded. Raw material purchases are recorded in the raw material inventory account if the perpetual inventory method is used, or the raw materials purchases account if the periodic inventory method is used. For example, using the periodic inventory method, the purchase of $750 of raw materials on account is recorded as an increase (debit) to raw materials purchases and an increase (credit) to accounts payable.
Answer:
The manufacturing account details all of the expenses and charges incurred in preparing the items for sale. This comprises expenses incurred while preparing the items but does not include the completed goods. Any form of expense that is regarded as a direct expense of manufacturing, such as the cost of raw materials, the cost of machines and their maintenance, and the salaries and wages of both skilled and unskilled people. This account includes the depreciation of assets such as expensive machines and plants. This statement of accounts is critical for a manufacturing company or plant to understand the total profit or loss incurred throughout the year in the overall process.
The manufacturing account statement is used to determine the effectiveness and cost price of finished goods. The format of the manufacturing account statement is not specified. It is simply necessary to clearly show the amounts and values.
- Production accounts are cost-sheet accounts in a ledger account format that indicate solely the production during a given period, which is the total cost and per-unit cost incurred during the time, as well as the profit or loss for that period. Production accounting is simply the total of all costs incurred during the transformation of raw materials into finished commodities. Insufficient
- Overhead Underapplied overhead refers to actual industrial overhead costs that are not allocated to production units. This type of issue arises when the precise standard division amount per unit of production does not correspond to the real overhead cost amounts incurred in a fiscal period, resulting in underapplied overhead.
- Unit Product Cost Absorption Costing All expenses connected with a specific product is captured using the absorption costing unit product cost method or the managerial accounting approach. Direct materials, direct labour, insurance, and rent are examples of entries that are accounted for using this method. Absorption costing unit product cost uses GAAP, or Generally Accepted Accounting Principles, for external reporting.
- Manufacturing Account Preparation The manufacturing account is used to calculate the cost of items sold.
- Manufacturing trading profit and loss accounts are kept by all manufacturing organizations to aid in the preparation of a manufacturing company's final accounts.
- Manufacturing overhead is computed by adding indirect factory expenses such as machine repairs, depreciation, insurance, factory supplies, electricity, and so on. Manufacturing overhead t account is often created to have a uniform form of account. Non-manufacturing entities, often known as trading entities, are typically involved in the purchase and sale of items for a profit.
Typically, manufacturing companies compile a manufacturing account as well as a trading account, profit and loss account, and balance sheet.
Read here more-
When an assesses should maintain books of accounts compulsorily?
https://brainly.in/question/14217367
Features of a manufacturing account
https://brainly.in/question/48371912