Question

manufacturing account is prepared to find out ?
(1)cost of sales
(2)gross profit
(3)net profit
(4)cost of production

Answer 1

Answer:

cost of production

hope it is helpfull

Answer 2

The correct answer is option (4) Cost of production.

Explanation:

• Manufacturing account is prepared to find out the cost of goods sold which includes direct expenses and it deals with raw materials and work in progress and not the finished goods.
• All the production expenses like depreciation on plant and machinery, salary to the factory manager, wages, etc are debited.
• Manufacturing account is prepared to find out the cost of production.
• It shows the cost of running and maintaining the factory.
• It is prepared to calculate the cost of goods produced during the year and it is also known as the production account.