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Chapter 15

The manufacturing account

3.1 Proforma

$ $
Factory cost of goods completed:
Opening Inventory of raw materials X
Purchases of raw materials X
–––
X
Closing Inventory of raw materials (include in SOFP) X
–––
Raw materials consumed X
Direct manufacturing wages X
Royalty payable X
Other direct factory expenses X
–––
Prime cost X
Production overhead:
Factory supervisors' wages X
Heating and lighting X
Factory rent X
–––
X
–––
Factory costs incurred X
Opening work in progress X
Closing work in progress (include in SOFP) (X)
–––
X
–––
Factory cost of goods completed
(to trading account) X
–––

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