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The manufacturing account is prepared to ascertain

Accounts - Principles of Accounts
JAMB 2019

The manufacturing account is prepared to ascertain

  • A. cost of goods sold
  • B. cost of production
  • C. Gross profit
  • D. Finished goods
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Correct Answer: Option B
Explanation

The manufacturing account forms an integral part of the revenue account of a manufacturing organization. It is prepared to know the cost of the goods manufactured or to ascertain the amount of any profit on the manufacturing process i.e the cost of production.

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