The document discusses manufacturing accounting concepts including production cost, factory overhead expenses, manufacturing account, trading account, and profit and loss account. It provides definitions and examples of direct materials, direct labor, direct expenses, and factory overhead/indirect costs. It also explains how to calculate and account for provision for unrealized profit when finished goods inventory is valued at transfer price rather than cost. Manufacturing, trading, and profit and loss accounts are presented in a standard format.
Control accounts the account which represents a particular sub ledger, sales ledger and purchases ledger control accounts.
At the end of an accounting period the accounts are balanced off and a trial balance prepared to check the accuracy of the book keeping entries. If a trial balance fails to balance this usually indicates that an error or errors may have been made and needs to be identified. As the business expands the accounting requirements increase which may lead to more errors occurring which are very difficult to find.
Calculating cost of goods sold in manufacturingMRPeasy
ย
Calculating Cost of Goods Sold in Manufacturing
Efficiency is the lifeblood of any manufacturing company and the cost of goods sold (COGS) is among the most important measurement of successful businesses. What is it and how to calculate it?
https://manufacturing-software-blog.mrpeasy.com/2019/03/26/calculating-cost-of-goods-sold-in-manufacturing/
https://www.mrpeasy.com/
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
Control accounts the account which represents a particular sub ledger, sales ledger and purchases ledger control accounts.
At the end of an accounting period the accounts are balanced off and a trial balance prepared to check the accuracy of the book keeping entries. If a trial balance fails to balance this usually indicates that an error or errors may have been made and needs to be identified. As the business expands the accounting requirements increase which may lead to more errors occurring which are very difficult to find.
Calculating cost of goods sold in manufacturingMRPeasy
ย
Calculating Cost of Goods Sold in Manufacturing
Efficiency is the lifeblood of any manufacturing company and the cost of goods sold (COGS) is among the most important measurement of successful businesses. What is it and how to calculate it?
https://manufacturing-software-blog.mrpeasy.com/2019/03/26/calculating-cost-of-goods-sold-in-manufacturing/
https://www.mrpeasy.com/
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
Trial balance and rectification of errorsItisha Sharma
ย
Trial balance and rectification of errors, Introduction- Specimen of a Trial Balance- Errors and their rectification โ Rectification of errors Rectification of errors detected after the preparation of Trial Balance but before the preparation of Final Accounts- Effect of errors on Profit โ Rectification of errors appearing after the preparation of Final Accounts
its my first !
please #follow so that i will make more for all
it is according to class 12 syllabus ! hopefully it will weak students like me ! it contains all fundamentals of partnership firm.
it also usefull in xam times as revision notes!
for more just follow me !
fb@venuankush
class 12 / completeguide
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
After the preparation of Trial Balance, in the final stage of summarizing, Final accounts of the business are prepared which includes Trading, Profit & Loss A/c & Balance Sheet. Preparation of these statements & the various adjustments therein have been discussed here.
The owners or the management may desire to ascertain the trading results of each department and the overall result of the organization. The method of accounting which is followed to obtain such results is known as departmental accounting.
clubs & societies : final accounts of non - profit organisationsSanjaya Jayasundara
ย
Final accounts of clubs and societies, Receipts and payments account , subscription , income and expenditure account , life subscription calculation, accumulated fund , accrual concept, differences between receipts & payments account and income and expenditure account. Cambridge O Level (7110 ; 7707) past papers and model papers,
Manufacturing accounts by inqilab patelInqilab Patel
ย
In order to ascertain the cost of producing the goods a manufacturing account is prepared. This account is also normally prepared at the end of the accounting period. Both direct and indirect expenses associated with the manufacturing process debited to the manufacturing account. The balance of this account representing cost of the goods produced is then transferred to the trading account.
Process costing explained with examples free of cost .It is for students of managerial accounting ,read this to quickly go through process costing.
http://www.brightscholarships.com
Twitter @scholarshipskys
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
Trial balance and rectification of errorsItisha Sharma
ย
Trial balance and rectification of errors, Introduction- Specimen of a Trial Balance- Errors and their rectification โ Rectification of errors Rectification of errors detected after the preparation of Trial Balance but before the preparation of Final Accounts- Effect of errors on Profit โ Rectification of errors appearing after the preparation of Final Accounts
its my first !
please #follow so that i will make more for all
it is according to class 12 syllabus ! hopefully it will weak students like me ! it contains all fundamentals of partnership firm.
it also usefull in xam times as revision notes!
for more just follow me !
fb@venuankush
class 12 / completeguide
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
After the preparation of Trial Balance, in the final stage of summarizing, Final accounts of the business are prepared which includes Trading, Profit & Loss A/c & Balance Sheet. Preparation of these statements & the various adjustments therein have been discussed here.
The owners or the management may desire to ascertain the trading results of each department and the overall result of the organization. The method of accounting which is followed to obtain such results is known as departmental accounting.
clubs & societies : final accounts of non - profit organisationsSanjaya Jayasundara
ย
Final accounts of clubs and societies, Receipts and payments account , subscription , income and expenditure account , life subscription calculation, accumulated fund , accrual concept, differences between receipts & payments account and income and expenditure account. Cambridge O Level (7110 ; 7707) past papers and model papers,
Manufacturing accounts by inqilab patelInqilab Patel
ย
In order to ascertain the cost of producing the goods a manufacturing account is prepared. This account is also normally prepared at the end of the accounting period. Both direct and indirect expenses associated with the manufacturing process debited to the manufacturing account. The balance of this account representing cost of the goods produced is then transferred to the trading account.
Process costing explained with examples free of cost .It is for students of managerial accounting ,read this to quickly go through process costing.
http://www.brightscholarships.com
Twitter @scholarshipskys
PART IIncome StatementFor the year ended December 31, 2009Part.pdfanandshingavi23
ย
PART I
Income Statement
For the year ended December 31, 2009
Particulars
Amount $
Sales Revenue
54000
Less: Purchases of merchandise
(27000)
Add: Opening Stock
15000
Less: Closing Stock
(10250)
Gross Profit
31750
Less:Operating Expenses
(Other Indirect cost, Expenses and losses)
Rent for shop
4000
Sales Commission
2300
Utilities for shop
2450
Net Profit
23000
Part 2
For the year ended December 31, 2010
Particulars
Amount
Amount
Opening Stock of Raw Material
Add: Purchase of Raw materials
Add: Purchase Expenses
Less: Closing stock of Raw Materials
Raw Materials Consumed
Direct Wages (Labour)
Direct Charges
13500
31000
0
9275
35,225
18300
0
Prime cost (1)
53,525
Add :- Factory Over Heads:
Rent on Manufacturing Plant
Plant Janitorial Service
Utilities of plant
9000
1250
4600
Works cost Incurred
14850
Add: Opening Stock of WIP
Less: Closing Stock of WIP
0
720
Works cost (2)
67655
Add:- Administration Over Heads:-
0
Cost of Production (3)
67655
Add: Opening stock of Finished Goods
Less: Closing stock of Finished Goods
0
5700
Cost of Goods Sold
61955
PART 2 (b) Income Statement
For the year ended December 31, 2010
Particulars
Amount
Amount
105000
Less: Cost of Goods Sold As per Above
(61955)
Gross profit
43045
Less : Selling and Distribution OH
Customer service hotline Exp
1000
Delivery Exp
1500
Sales Salaries
5000
7500
Net Profit
35545
PART 2 (c)
The Major differencein income statement of Best friends Manufacturing and hannah\'s pets is in
Calculation of cost of goods sold
Cost of goods sold of Best friends Manufacturing includes
(i) Manufacturing cost
(ii) administration expenses and
(iii) Opening and Closing Stock of Raw material,WIP and FG
BUT
Cost of goods sold of hannah\'s pets includes only administration expenses and Finished goods
Stock
The method for reporting earnings is the same for merchandisers and manufacturers. Each type
of company has sales and the total of these sales is the earnings figure. This figure does not
reflect cost-of-goods expenses.
Cost of Goods for Merchandisers
Merchandisers buy goods and resell them. The cost of those goods must be subtracted from the
earnings figure. The method for calculating this figure is to add inventory on hand at the
beginning of the accounting period to inventory purchased during the accounting period.
Subtract the inventory on hand at the end of the period, and subtract any freight charges. This is
the cost-of-goods figure for a merchandiser. The merchandiser\'s income statement will show
gross revenues minus this cost-of-goods number.
Cost of Goods for Manufacturers
Manufacturers break the cost of goods into categories. Raw materials expenses make up the first
category of manufacturing expenses. This cost covers any components, parts or materials
required to make the companyโs product. The manufacturer must also inventory goods-in-
progress. These are partially manufactured products that could not be finished before the end of
the accounting period. In addition, manufacturers must count fi.
The slides provide for the fundamental principles and calculations of cost accounting. It is useful for the foundation levels. People to go through these slides must expect the very basics of cost accounting. Also it does not only provide for the fundamentals, but it also gives more complex calculations, which are well explained.
After the preparation of Trial Balance, in the final stage of summarizing, Final accounts of the business are prepared which includes Trading, Profit & Loss A/c & Balance Sheet. Preparation of these statements & the various adjustments therein have been discussed here.
"๐ฉ๐ฌ๐ฎ๐ผ๐ต ๐พ๐ฐ๐ป๐ฏ ๐ป๐ฑ ๐ฐ๐บ ๐ฏ๐จ๐ณ๐ญ ๐ซ๐ถ๐ต๐ฌ"
๐๐ ๐๐จ๐ฆ๐ฌ (๐๐ ๐๐จ๐ฆ๐ฆ๐ฎ๐ง๐ข๐๐๐ญ๐ข๐จ๐ง๐ฌ) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
๐๐ ๐๐จ๐ฆ๐ฌ provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
โญ ๐ ๐๐๐ญ๐ฎ๐ซ๐๐ ๐ฉ๐ซ๐จ๐ฃ๐๐๐ญ๐ฌ:
โข 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
โข SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
โขFreenBecky 1st Fan Meeting in Vietnam
โขCHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
โข WOW K-Music Festival 2023
โข Winner [CROSS] Tour in HCM
โข Super Show 9 in HCM with Super Junior
โข HCMC - Gyeongsangbuk-do Culture and Tourism Festival
โข Korean Vietnam Partnership - Fair with LG
โข Korean President visits Samsung Electronics R&D Center
โข Vietnam Food Expo with Lotte Wellfood
"๐๐ฏ๐๐ซ๐ฒ ๐๐ฏ๐๐ง๐ญ ๐ข๐ฌ ๐ ๐ฌ๐ญ๐จ๐ซ๐ฒ, ๐ ๐ฌ๐ฉ๐๐๐ข๐๐ฅ ๐ฃ๐จ๐ฎ๐ซ๐ง๐๐ฒ. ๐๐ ๐๐ฅ๐ฐ๐๐ฒ๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐ ๐ญ๐ก๐๐ญ ๐ฌ๐ก๐จ๐ซ๐ญ๐ฅ๐ฒ ๐ฒ๐จ๐ฎ ๐ฐ๐ข๐ฅ๐ฅ ๐๐ ๐ ๐ฉ๐๐ซ๐ญ ๐จ๐ ๐จ๐ฎ๐ซ ๐ฌ๐ญ๐จ๐ซ๐ข๐๐ฌ."
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
ย
According to TechSci Research report, โIndia Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030โ, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
ย
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
ย
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
๐ข Email Access
๐ข Bank Added
๐ข Card Verified
๐ข Full SSN Provided
๐ข Phone Number Access
๐ข Driving License Copy
๐ข Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1โช(218) 203-5951โฌ
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
ย
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
ย
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
ย
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Improving profitability for small businessBen Wann
ย
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your companyโs legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, weโll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
ย
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Business Valuation Principles for EntrepreneursBen Wann
ย
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
ย
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
2. Production CostProduction Cost
Production cost
= Prime cost / Direct cost + Factory overhead
expenses / Indirect cost
2
expenses / Indirect cost
Contributed By : KAMLESHWAR PANDEY
3. 1. Direct materials
โข Costs of the materials used during the period.
โข Include the purchase price of the raw materials
and the acquisition costs related to the purchase.
3
and the acquisition costs related to the purchase.
โข Examples: Purchase of raw materials
Carriage inwards / freight charges
on raw materials
Contributed By : KAMLESHWAR PANDEY
4. 2. Direct labour
โข Wages paid to the people who are directly involved
in the manufacturing process.
4
in the manufacturing process.
โข Example: Direct labour, Direct wages, Factory
wages, Production wages,
Manufacturing wages
Contributed By : KAMLESHWAR PANDEY
5. 3. Direct expenses
โข They refer to the expenses paid according to each
unit of production.
5
unit of production.
โข Examples: Royalties
Contributed By : KAMLESHWAR PANDEY
6. Factory Overhead Expenses / Indirect
Costs
Factory Overhead Expenses / Indirect
Costs
Cost incurred in the manufacturing process, but they
cannot be traced directly to the goods being produced.
Include indirect materials, indirect labour and indirect
expenses.
Examples:
Indirect materials
6
Indirect materials
โ Lubricants
โ Loose tools (opening balance + purchase โ closing
balance)
Indirect labour
โ wages, salaries, bonus or commission to cleaners, crane
drivers, foremen, supervisors and production managers.
Contributed By : KAMLESHWAR PANDEY
7. Indirect expenses related to the factory, machinery
and vehicles
โ Rent and rates
โ Depreciation
โ Insurance
7
โ Insurance
โ Repairs and maintenance
โ Factory power / electricity
โ Internal transport
โ Loss on disposal
Contributed By : KAMLESHWAR PANDEY
8. Work in ProgressWork in Progress
It refers to the semi-finished goods, which should
be included in the cost of goods manufactured.
8Contributed By : KAMLESHWAR PANDEY
9. Manufacturing AccountManufacturing Account
It shows the production cost or transfer price of
goods completed during the accounting period.
1. Direct materials
2. Direct labour
9
2. Direct labour
3. Direct expenses
4. Factory overhead expenses
5. Work in progress
6. Manufacturing profit / loss
Contributed By : KAMLESHWAR PANDEY
10. Trading AccountTrading Account
This account shows the gross profit or loss
resulted from the trading of manufactured and
other purchased goods.
10
other purchased goods.
The account includes:
Sales
Cost of goods sold
โ Manufactured goods
โ Other goods
Contributed By : KAMLESHWAR PANDEY
11. Profit and Loss AccountProfit and Loss Account
Profit or loss of the whole business during the
accounting period.
Includes all the expenses and income related to
11
Includes all the expenses and income related to
the office and the running of the whole business
such as:
Gross profit / loss from the trading account
Manufacturing profit / loss
Contributed By : KAMLESHWAR PANDEY
12. Administration expenses
Selling and distribution expenses
Financial expenses
Increase / decrease in the provision for unrealized
profit
12
Net abnormal loss
โ cash misappropriated
โ losses of raw materials
โ losses of finished goods
Contributed By : KAMLESHWAR PANDEY
13. Some expenses are related to both the
manufacturing process and the administration of
the office such as:
Rent and rates
Electricity
13
Electricity
Insurance
Depreciation on premises
Motor vehicles
Motor vehicles expenses
Contributed By : KAMLESHWAR PANDEY
14. These expenses should be allocated to the
factory and office and debited to the
manufacturing account and the profit and loss
account respectively.
14
account respectively.
The bases of allocation are usually given in the
examination questions.
Contributed By : KAMLESHWAR PANDEY
15. Format of Manufacturing, Trading
and Profit and loss account
Format of Manufacturing, Trading
and Profit and loss account
15
and Profit and loss accountand Profit and loss account
Contributed By : KAMLESHWAR PANDEY
16. Manufacturing, Trading and Profit and Loss Account
for the year ended 31 Dec XXXX
$ $
Opening stock of Raw Materials X
Add: Purchases of Raw Materials X
Carriage inwards X
Less: Closing stock of Raw Materials (X)
Cost of Raw Materials Consumed X
Direct Labour X
Royalties X
Direct material
Direct labour
16
Royalties X
Prime Cost X
Factory Overhead Expenses:
Loose Tools (opening bal. + purchases โclosing bal.) X
Rent (e.g. 25%) X
Production Managerโs salaries X
Factory Power X
Maintenance of plant & Machinery X
Depreciation of Plant & Machinery X X
X
Direct Expenses
Overhead
Contributed By : KAMLESHWAR PANDEY
17. Add: Opening Work in Progress X
Less: Closing Work in Progress X
Production Cost of Goods Completed X
Factory profit/(loss) X
Transfer price of Goods Completed X
$ $
Sales X
Less: Returns inwards (X)
X
Less: COGS
The goods are transferred
to trading a/c at production
cost/ transfer price
17
Less: COGS
Opening stock of finished goods X
Production cost/Transfer price of Gds completed X
Less: Returns outwards (X)
Fire Loss (X)
Less: Closing stock of finished goods (X) X
Gross Profit X
Add: Factory Profit X
Add: Discount Received X
XContributed By : KAMLESHWAR PANDEY
18. $ $
Less: Expenses
Carriage Outwards X
Rent (e.g. 75%) X
Discount allowed X
Administration Expenses X
Distribution Expenses X
Selling Expenses X
Depreciation of Delivery Van X
Provision for Unrealized Profit X
18
Provision for Unrealized Profit X
Fire Loss X X
Net Profit X
Contributed By : KAMLESHWAR PANDEY
20. Stock of raw materials, work in progress and
other finished goods are valued at cost.
However, the stock of manufactured goods can
be valued at production cost or the transfer price
Production cost Vs. Transfer priceProduction cost Vs. Transfer price
20
be valued at production cost or the transfer price
of goods completed.
Provision of unrealized profit of on stock should
be made if closing stock of manufactured goods
is valued at transfer price.
Contributed By : KAMLESHWAR PANDEY
21. Provision of Unrealized ProfitProvision of Unrealized Profit
Be made on the closing stock valued at production
cost plus a percentage of factory profit.
Provision for unrealized profit
21
Provision for unrealized profit
Mark up%
100%+ Mark up(%)
= Stock (at transfer price) x
Contributed By : KAMLESHWAR PANDEY
23. A company manufactures and sells it own products.
It also purchases and sells other finished goods.
Production 100 units $1@ $100
Sales 80 units $2@ $160
Closing stock 20 units $1@ $20
Expenses for this period $50
Prepare manufacturing, trading and profit and loss
23
Prepare manufacturing, trading and profit and loss
account for the following 2 situations would be
shown:
1. The factory output is transferred to the trading account at
factory cost.
2. The factory output is transferred to the trading account at
factory cost plus 20% factory profit, and the stock of
manufactured goods is valued at transfer price.
Contributed By : KAMLESHWAR PANDEY
24. 1.
$ $
Production cost of Gd completed (100 units*$1) 100
Sales (80 units*$2) 160
Less: COGS
Production cost of Gd completed 100
Manufacturing, trading and profit and loss account (extract)
24
Production cost of Gd completed 100
Less: Closing stock(at cost) (20 units*$1) 20 80
Gross Profit 80
Less: Expenses
Expenses 50
30
Contributed By : KAMLESHWAR PANDEY
25. 2.
$ $
Production cost of Gd completed (100 units*$1) 100
Add: Manufacturing profit (100*0.2) 20
Transfer price of Gds completed 120
Sales (80 units*$2) 160
Less: Cost of goods sold
Transfer price of Gd completed 120
25
Transfer price of Gd completed 120
Less: Closing stock(at transfer price) (20+20*0.2) 24 96
Gross Profit 64
Add: Manufacturing profit 20
84
Less: Expenses
Expenses 50
Provision for unrealized profit (24*20/120) 4 54
Net Profit 30
Cost + profit
Contributed By : KAMLESHWAR PANDEY
26. Increase in Provision Decrease in Provision
Accounting entries
Increase/ Decreased in Provision
of Unrealized Profit
Increase/ Decreased in Provision
of Unrealized Profit
26
Decrease in Provision
Dr Profit and Loss
Cr Provision for
Unrealized Profit
Dr Provision for
Unrealized Profit
Cr Profit and Loss
Contributed By : KAMLESHWAR PANDEY
28. Goods manufactured are to be transferred
to sales department at factory cost plus
20%.
2004 2005 2006
$ $ $
Stock at 1 Jan (at transfer price) - 2,400 3,600
28
Stock at 1 Jan (at transfer price) - 2,400 3,600
Stock at 31 Dec (at transfer price)2,400 3,600 3,000
Prepare the provision for unrealized profit account, profit
and loss account and balance sheet respectively for the
three years.
Contributed By : KAMLESHWAR PANDEY
29. Provision for unrealized profit
1994 $ 1994 $
Dec 31 Bal c/d
(2400*20/120) 400 Dec 31 P/L 400
Profit and Loss account (extract)
94
$ $
29
$ $
Gross Profit X
Less: Expenses
Increase in provision for unrealized profit 400
Contributed By : KAMLESHWAR PANDEY
30. Provision for unrealized profit
1994 $ 1994 $
Dec 31 Bal c/d
(2400*20/120) 400 Dec 31 P/L 400
1995 1995
Dec 31 Bal c/d
(3600*20/120) 600
Jan 1 Bal b/d 400
Dec 31 P/L 200
600 600
Profit and Loss account (extract)
30
Profit and Loss account (extract)
94
$ $
Gross Profit X X
Less: Expenses
Increase in provision for unrealized profit
95
$ $
400 200
Contributed By : KAMLESHWAR PANDEY
31. Provision for unrealized profit
1994 $ 1994 $
Dec 31 Bal c/d
(2400*20/120) 400 Dec 31 P/L 400
1995 1995
Dec 31 Bal c/d
(3600*20/120) 600
Jan 1 Bal b/d 400
Dec 31 P/L 200
600 600
31
1996 1996
Jan 1 bal b/d 600
Dec 31 Bal c/d
(3000*20/120) 500
Dec 31 P/L 100
600 600
Contributed By : KAMLESHWAR PANDEY
32. Profit and Loss account (extract)
94
$ $
Gross Profit X X X
Add: Decrease in provision for unrealized profit 100
Less: Expenses
Increase in provision for unrealized profit
95
$ $
96
$ $
400 200
32
200
Contributed By : KAMLESHWAR PANDEY
34. Stock LossStock Loss
i. Normal loss
โข Normal losses refer to losses related to the
ordinary activities of the business/
34
ordinary activities of the business/
โข Examples: damaged / spoiled stock, obsolete
stock
โข No entry is required for normal loss
Contributed By : KAMLESHWAR PANDEY
35. ii. Abnormal loss
โข Abnormal losses refer to losses not related to the
ordinary activities of the business.
35
ordinary activities of the business.
โข Examples: fire loss, burglary loss
Contributed By : KAMLESHWAR PANDEY
36. Loss of raw materials without an insurance claim
Dr Profit and Loss
Cr Manufacturing
With the total loss
Accounting entries
36
Cr Manufacturing
Loss of finished goods without an insurance claim
Dr Profit and Loss
Cr Trading
With the total loss
Contributed By : KAMLESHWAR PANDEY
37. Loss of raw materials with an insurance claim
Dr Bank/Insurance Company
Dr Profit and Loss
Cr Manufacturing
With the insurance claim
With the net loss
With the total loss
37
Loss of finished goods with an insurance claim
Dr Bank/Insurance Company
Dr Profit and Loss
Cr Trading
With the insurance claim
With the net loss
With the total loss
Contributed By : KAMLESHWAR PANDEY
38. Cheung Kong Enterprises
Manufacturing, Trading and Profit and Loss Account for the year
ended 30 April 2004
Cost of raw materials consumed
Opening stock 160,000
Purchase 1,640,000
38
1,800,000
Closing stock 200,000 1,600,000
Manufacturing wages 800,000
Prime cost 2,400,000
Contributed By : KAMLESHWAR PANDEY
39. Prime cost 2,400,000
Factory overheads
Manufacturing expenses 416,000
Depreciation 192,000 608,000
3,008,000
Opening work in progress 126,000
39
Opening work in progress 126,000
3,134,000
Closing work in progress 120,000
Cost of goods completed 3,014,000
Contributed By : KAMLESHWAR PANDEY
40. Depreciation Total 2,400,000 x 10% = 240,000
Manufacturing 80% = 192,000
Administration 10% = 24,000
40
Selling and distribution 10% = 24,000
Contributed By : KAMLESHWAR PANDEY