Accounts for manufacturing enterprises using schedules:

(a) Schedule of Cost of Goods Manufactured

$ $ $
DIRECT MATERIALS:
raw materials on hand b/f X
add raw materials purchased X
add transport on raw materials X
less returns on materials (X)
net raw materials purchased X
raw materials available for production X
less raw materials on hand c/d (X)
raw materials used in production A
DIRECT LABOUR (calculated data) B
* PRIME COST C
MANUFACTURING OVERHEADS:
[factory-based expenses &
adjustments] (calculated data) x
[indirect labour] (calculated data) x
[indirect materials] (calculated data) x
total overhead expenses D
* MANUFACTURING COST E
WORK-IN-PROGRESS:
add work-in-progess b/f x
less work-in-progress c/d (x)
net work-in-progress F
* COST OF GOODS MANUFACTURED G
add factory profits (x% mark-up) x
* COST OF PRODUCTION H
 (b) Schedule of Cost of Goods Sold

$ $ $
finished goods on hand b/f X
add cost of manufactured goods (transfer) X
add carriage on goods transferred X
add additional goods purchased X
net finished goods available X
less finished goods on hand c/d (X)
COST OF FINISHED GOODS SOLD I

(c) The Income Statement

$ $ $
TURNOVER:
sales x
less returns and allowances (x)
net sales J
less COST OF GOODS SOLD (transfer) I
* GROSS MARGIN K
less NON-MANUFACTURING OVERHEADS
selling & distribution expenses x
administrative expenses x
total expenses L
* NET PROFIT M
add factory profit (transferred) x
less factory profit unrealized x
net factory profit realized N
* NET INCOME O