difference b/w trading a/c & manufaturing a/c.
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Answer / ravi.harjai2009@gmail.com
somehow there is no difference between the trading and
manufaturing account but the main purpose regarding
manufaturing account is calculating the cost per unit....
but in trading account there is no any purpose like cost per
unit of product .The purpose of preparing trading account is
calculating the profit before oprating expense....
| Is This Answer Correct ? | 23 Yes | 6 No |
Answer / ysk
Trading account deals only with trading transactions
Op.Stock, Purchases, Production from Transfer of
Manufacturing division, Sales, Closing Stocks.
In Manufacturing Account it deals with processing also. But
not sales. It contains, Op.Stock of Raw materials, work in
process, finished goods(not yet transferred to trading
account), production transferred to Trading Account,
closing stocks of Raw Materials, WIP, FG.
-- Karunakar(YSK)
| Is This Answer Correct ? | 13 Yes | 0 No |
Answer / h.r. sreepada bhagi
Trading Account can be prepared by a manufacturing company
or a trading company to calculate the Gross Profit.
Manufacturing Account can be prepared by a manufacturing
company only to calculate the Cost of Goods Produced.
| Is This Answer Correct ? | 9 Yes | 2 No |
If we get TDS certificate after audit whareas this certificate is related to same financial year,in this condition how will we consider tds or can we take this credit in next f.y.?
1. During the current period, ABC Ltd sold 60,000 units of product at Rs. 30 per unit. At the beginning for the period, there were 10,000 units in inventory and ABC Ltd manufactured 50,000 units during the period. The manufacturing costs and selling and administrative expenses were as follows: Total cost Number of units Unit cost Rs. Rs. Beginning inventory: Direct materials 67,000 10,000 6.70 Direct labour 1,55,000 10,000 15.50 Variable factory overhead 18,000 10,000 1.80 Fixed factory overhead 20,000 10,000 2.00 Total 2,60,000 26.00 Current period costs: Direct materials 3,50,000 50,000 7.00 Direct labour 8,10,000 50,000 16.20 Variable factory overhead 90,000 50,000 1.80 Fixed factory overhead 1,00,000 50,000 2.00 Total 13,50,000 27.00 Selling and administrative expenses: Variable 65,000 Fixed 45,000 Total 1,10,000 Instructions: 1. Prepare an income statement based on the variable costing concept. 2. Prepare an income statement based on the absorption costing concept. 3. Give the reason for the difference in the amount of income from operations in 1 and 2.
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