Question

Manufacturing Account shows _________.

2 points

Gross Profit

Net Profit

income

Cost of production​

Answer 1

Answer:

The trading account shows Gross Profit while Manufacturing Account shows the cost of goods sold which includes direct expenses. Manufacturing account deals with the raw material and work-in-progress while the trading account would deal with finished goods only.

Answer 2

Manufacturing Accounting shows the Cost of production.

• The cost of production means the total cost that is incurred by a business form to produce a specific quantity of product.
• It includes all the cost which is required to make the product right from purchasing the raw materials to the electricity bills of the factory.
• The account maintained by a manufacturing unit tells the exact cost of production of a specified product.