AccountingCode 9706
Manufacturing businesses
What this topic asks you to be able to do
- the procedure for compiling a manufacturing account, telling apart direct and indirect expenses, and bringing factory profit into the account
- how to draw up the statement of profit or loss of a manufacturing business, together with its statement of financial position
- how to deal with manufacturing profit in the accounts and remove the unrealised profit contained in unsold inventory
- why a business might include a manufacturing profit in its accounts