The manufacturing account is prepared to ascertain
-
A.
cost of goods sold -
B.
cost of production -
C.
Gross profit -
D.
Finished goods
Correct Answer: Option B
Explanation
The manufacturing account forms an integral part of the revenue account of a manufacturing organization. It is prepared to know the cost of the goods manufactured or to ascertain the amount of any profit on the manufacturing process i.e the cost of production.