Work-in-progress valued at Production Cost

Fortune Manufacturing Company

Manufacturing Account
For the year ended XX,XX,XX
RM RM RM

Cost of Material Consumed

Opening inventory 7,000
Purchases 51,860
Less: Returns Outwards 1,510
Raw 50,350
Add: Carriage Inwards Materials 280
Custom Duties 740 51,370
58,370
Less: Closing inventory 2,650 55,720

Direct Labour
Direct Wages / Manufacturing Wages / Production Wages 40,160

Direct Expenses
Patent right / Royalties
Hire of Production Machine
Subscontract Cost 2,000
Prime Cost 97,880

Add: Production Overhead

Indirect Materials / Factory Salaries 2,000
Indirect Wages 7,300
Salaries of Factory Manager and Supervisor 3,000
Factory Rent / Rates 5,600
Factory Expenses 4,000
Factory Loose Tools (Opening + Purchases - Closing) 1,300
Repairs and Maintenance of Machinery and Tools 1,400
Insurance (e.g. 2/5) 1,000
Light, Heat and Power (e.g. 3/4) 2,400
Canteen Services (e.g. 4/5) 500
Depreciation of Plant and Machinery 9,000
Depreciation of Tools and Equipment 1,000 36,500
134,380
** Add: Opening Work-in-Progress at Production Cost 12,600
146,980
** Less: Closing Work-in-Progress at Production Cost 2,600
Production Cost of Finished Goods 144,380
Add: 20% Manufacturing Profit 28,876
Production Cost of Finished Goods c/d, at cost plus 20% OR 173,256
Production Cost of Finished Goods c/d, at market price