The main object of Manufacturing Account is to show:
cost of finished goods produced
The correct answer is option 4. The main purpose of the Manufacturing Account is to determine the cost of finished goods produced during a given period. This includes the direct costs involved in manufacturing, such as raw materials, labor, and overheads. The other options—cost of goods sold, gross profit, and net profit—are determined after calculating the cost of production, not the primary objective of the Manufacturing Account.
Similar Questions
Which of the following items is NOT recorded in profit and loss account?
Which of the following items is recorded in profit and loss appropriation account?
Which of the given statement(s) is/are correct in the context of manufacturing account?
(i) A Manufacturing Account is prepared for finding out the cost of goods produced (also called Cost of Production)
(ii) Sale of scrap and the closing work-in-progress are shown on the credit side of the Manufacturing Account.
Which of the following costs is NOT included while calculating the cost of the inventory?
Which of the following statements is INCORRECT in the context of Not-for-profit organizations?
A not-for-profit organization pays rent for the building at Rs. 1,000 per month. However, the rent for the last two months has not been paid. What will be the amount shown in the receipt & payment account and income & expenditure account, respectively?
The cost of goods sold is equal to:
Which of the following statements is/are correct in the context of the Trading Account?
(i) Trading Account is prepared for ascertaining the net profit.
(ii) Cost of goods purchased includes all expenses incurred till goods are brought to the place of business.
Which of the following statement is INCORRECT in the context of Profit and Loss account?
______ appears on the credit side of Manufacturing Account.
Important Questions from Trading and Profit & Loss Account
The accountant of XYZ Corp. is entitled to a commission of 10% on net profits, after charging such commission. If the amount of commission payable for the year is Rs. 30,000, the net profit of XYZ Corp. after such commission would be:
On 28 th March, 2019 stock worth ₹10,000 was lost by fire. The insurance company admitted full claim. On 31 st March, 2019 while preparing Final Accounts, it will be shown
Which of the following formula is correct to calculate provision on debtors to be transferred to Profit and Loss Account?
The unfavourable balance of Profit and Loss Account should be:
The purpose of final accounts is to ascertain:-
