FINANCIAL ACCOUNTING SSS2 SECOND TERM              

WEEK 3 &4

MANUFACTURING ACCOUNTS

Performance Objectives

Students should be able to:

1.    State four classifications of costs revealed by manufacturing accounts.

2.    State two reasons for the preparation of manufacturing accounts.

Contents

MEANING OF MANUFACTURING ACCOUNTS

Manufacturing can simply be described as the transformation of raw materials into finished goods e.g. manufacturing companies like Nestle, Cadbury, PZ etc. These manufacturing firms do manufacture their goods or product before they are sold to their customer. They do not buy to sell but produce what they sell.

There manufacturing companies prepare final accounts called Manufacturing Accounts.

PURPOSE OF MANUFACTURING ACCOUNTS

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