Manufactur Accounting

Buying
a. Raw material
b. Overhead
Used
a. Worker
b. Supervisor/ adminstrative
Cost
Production process
Finish goods
 The Cost of Production
Merchandise Inventory:
a. Raw material
b. Work in process
c. Finish goods

Direct labour

Overhead cost
a. Spare part
b. Gasoline/electric/engine
c. Supervisor/admintrative/indirect labour
d. Depreciation mechine
e. Maintenance/repair
f. Indirect material
g. Insurance Labour and mechine
 Accounting Cycle
• Transaction
• General journal
• Posting
• Trial balance
• Income statement
• Closing entries
• Cost of merchandise sold
• Cost of goods sold
 Closing entries
• Cost of merchadise sold
a. Raw material
b. Direct labour
c. Spare part
d. Gasoline/electric/engine
e. Supervisor/admintrative/indirect labour
f. Depreciation mechine
g. Maintenance/repair
h. Indirect material
i. Insurance Labour and mechine
j. Work in process
And closed to income summary
 Closing Entries
Closing entries
Date Description Dr Cr
31-DesSales 777.350
Sales returns & allowance 22.820
Sales discount 13.500
Income Summary 741.030
31-DesIncome Summary 404.870
Cost of Good Solds 404.870
31-DesIncome Summary 173.055
Sales salaries Exp 76.500
Advertising Exp 19.500
Depreciation Exp 7.400
Store Supplies Exp 2.125
Miscellaneous selling Exp 2.800
Office salaries exp 41.630
Rent Exp 20.200
Insurance Exp 1.250
Miscellaneous adminis Exp 1.650
31-DesIncome Summary 10.000
Deviden 10.000
31-DesProfit 173.105
Capital 173.105
1.538.380 1.538.380
Cost of merchadise and Good sold
Cost of Merchandise Sold

Work in Process Inventory 12.000.000

Raw material Inventory 7.500.000 (+)

Material Purchase 120.000.000

Raw material Inventory 16.500.000 (-)

111.000.000

Direct Labour 80.000.000

Manufacturing Overhead 85.000.000 (+)

165.000.000

Work in Process Inventory 5.500.000 (-)

159.500.000

282.500.000

Finish Goods Inventory (+) 25.000.000

Finish Goods Inventory (-) 37.000.000

Cost of Merchandise Sold 270.500.000

 Income Stament

Income Statement

Sales 750.000.000

Cost of Merchandise Sold 270.500.000

Gros Profit 479.500.000

Expense

Administrative Cost 65.000.000

Selling Cost 16.500.000

Profit 398.000.000