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The manufacturing account

Example 1: Solution (cont.)

Statement of profit or loss of GCH for the year ended 31 December 20X4
$ $
Sales
Less: Returns inwards
–––––––

Opening inventory of finished goods
Factory cost of goods completed
–––––––

Less: closing inventory of finished goods
–––––––

–––––––
Gross profit
Less:
Selling and distribution costs
Administration expenses
–––––––

–––––––
Net profit for the year

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