FORMAT OF MANUFACTURING ACCOUNT
PBC LIMITED
MANUFACTURING, INCOME STATEMENT FOR THE YEAR ENDED 31ST DEC. 2021
RAW MATERIAL GHC GHC GHC
Opening inventory xxx
Add purchase xxx
Add carriage inwards xxx
Less: return outwards (xxx)
Less: Goods withdrawn (xxx)
Cost of raw material available to use xxx
Less closing inventory (xxx)
Cost of raw material used xxx
Add: Direct labour (Factory wages) xxx
Direct labour: prepaid/accrued (xxx)/xxx xxx
Add: direct expenses (Royalties ) xxx
PRIME COST XXX
Add: Factory Overheads
INDIRECT MATERIAL:
Opening inventor xxx
Add: purchases xxx
Add: carriage inwards xxx
Less: return outwards (xxx)
Less: goods withdrawn (xxx)
Cost indirect material available for use xxx
Less closing inventory (xxx)
Cost indirect material used xxx
Factor indirect wages xxx
Factor lighting xxx
Factor rent and rate xxx
Factory insurance xxx
Dep. Plant & machinery xxx
TOTAL OVERHEADS XXX
COST OF PRODUCTION XXX
Add: Opening W.I.P XXX
Less: Closing: W.I.P (xxx)
COST OF GOOD PRODUCED XXX
Manufacturing profit ( % x Cost of good produced) xxx
MARKET VALUE XXX
Sales xxx
Less return inwards (xxx)
Net sales xxx
Less cost of sales:
Opening inventory xxx
Add market value xxx
Purchase xxx
Add carriage inward xxx
Less return outwards (xxx)
Less goods withdrawn (xxx)
Add wages xxx
Cost of goods available for sale xxx
Less closing inventory (xxx)
Cost of sales (xxx)
Gross profit xxx
Other income:
Manufacturing profit xxx
Commission received xxx
Decrease in provision for unrealized profit xxx
Decrease in provision for doubtful debt xxx
Gross income xxx
Less: operating expenses
Bad debt xxx
Increase in provision for unrealized profit xxx
Increase in provision for doubtful debt xxx
Wages & salaries xxx
Rent and rates xxx
Carriage outwards xxx
Discount allowed xxx
Bank charges xxx
Dep. Office equipment xxx
Total expenses xxx
NET PROFIT XXX
CALCULATION FOR PROVISION FOR UNREALISED PROFIT
MANUFACTURING PROFT X CLOSING INVENTORY OF FINISHED GOODS
MARKET VALUE
