Manufacturing trading profit and loss account questions and answers


A manufacturing account is an account in which the costs of producing finished goods are accumulated. Eventually the factory cost of finished goods produced in the period is transferred to the trading account as part of the cost of finished goods sold.

Manufacturing accounts are prepared for internal management use only. Their purpose is to distinguish between the costs and profitability associated with manufacturing operations and those associated with trading which are shown in the trading account.

Work in progress WIP: Work in progress WIP is an item of production on which work has started but not finished, it is part complete at the balance sheet date. Since resources have been devoted to creating it, a value can be given to it and it can be included in stock. The resources used in bringing. WIP to its current state are therefore not included in the trading account. You may need to think carefully about the adjustment for work in progress near the end of the statement. When a business purchases raw material they are issued to production departments as required.

Employees in the production department will work on the raw materials in order to convert them eventually into finished goods ready for sale. At the balance sheet date, there will be work in progress in the production departments, i. Items, which have been partly converted but which, have not yet reached the stage of being finished goods. The value of this work in progress will include not only the cost of the raw materials, but also the wages of employees who worked on it plus any attributable overheads.

It follows that the prime costs and factory overheads shown in the manufacturing account will not all have resulted in the production of finished goods, because some of the costs will have gone on work in progress. Depending on whether the value of WIP has increased or decreased from the previous year, an adjustment is made as follows.

Deduct increase closing less opening stock of WIP from total costs incurred. Add decrease opening less closing less opening stock of WIP to total cost incurred. Is it fair, however, to allow only the final department handling the goods to make a profit when they are eventually sold?

The use of transfer prices means that adjustment are required in the trading and profit and loss account to give a manufacturing trading profit and loss account questions and answers net profit by adjusting the provision for unrealised profit.

The first part of the trading and profit and loss account would thus appear as follows. Factory profit on finished goods produced 29, 33, The feedback from manufacturing trading profit and loss account questions and answers tutor include the followings: The session was started late because the students attendance records has gone down lately, this may due to the fact that their devolved assessment is coming up in four weeks.

I have to persuade the ten students who attended the session to come for that session, before I can start the session.

In future I will try and put this right and try different approach to make sure that the class starts on time and also do something to improve the students attendance. I strongly agreed with the feedback on the initial time spent on VE.

Thus this approach could have make the session a bit more interactive. I can and should have exploit the interactive functions of the smart-board and made the session more interactive by involve the student and thus use the interactive part of the session to motivate the student. My aims, outcomes and strategies for the lesson were appropriate, but the quantity of the photocopy handout is a bit messy.

I do aware of this but I have little time to reproduce better quality before the session. I must certainly make more beste forex broker nederland to produce the better quality handouts for the students in future, so that the student will have more interest in reading the handout. Using the smart-board overhead projector raises many interesting issues.

I manufacturing trading profit and loss account questions and answers have try to exploit some of the online interactive functions of this smart-board and avoid the trap of just using it to show continuous slides. The interactive approach would be more appropriate to way to use the smart-board to manufacturing trading profit and loss account questions and answers my lesson instead of having it like whiteboard. I can also control the pace manufacturing trading profit and loss account questions and answers at which I deliver the lesson.

I should have tried to do things in this ways during the session because it is possible to do a lot of things with this smart-board technology. I discussed all the above issues with my tutor after the session. I will in future put the number of students who are still working on the exercise into consideration before I start my explanation, thus decide to allocate more time or ask all of them to stop and listen to my explanation of the solution manufacturing trading profit and loss account questions and answers the assessment tasks.

I may need to put the question s asked by a student back to the rest of the group and see if manufacturing trading profit and loss account questions and answers students who are quiet during session can answer the questions before I give my answer to the question. I believe this approach would help me to build the profile of each student and able to identify and help less able students.

The assessment is set simple deliberate because of the time limit for the session. The normal practice is to give them something more complex when they have two hours session and the student are some time require to continue on Microsoft excel manufacturing trading profit and loss account questions and answers build a spreadsheet of the assessment tasks.

The session started some 20 minutes late because the student are having some meeting with the business manager and missed their launch break. It is difficult to get them to attend the session because they rather go for launch rather than attending that session. The session started well with Verbal exposition by introducing the topic follow by question and answer, show simple example format and then assessment of learning task for student to complete. The student came late and session started late, thus my tutor arrived about 15 minutes early.

The session went well but some students did not contribute to the session, probably because they had a long day and non-stopping activities before they have my session. I did not do much to get all the student involved either. My response manufacturing trading profit and loss account questions and answers the comments on the assessment task I make it simple enough for everybody to do it in time and follow the appropriate format.

Also plan and prepare assessment tasks and handout for the student. During the session I followed my delivery plan and I offer some explanation about the main concepts of manufacturing accounts and show the format of manufacturing accounts.

I do emphasised that those areas can and will be tested as part of adjustment needed for the manufacturing account in most assessment tasks. There are about half of the group who are very hard working and confidant of their ability. At the same time about half the group are weak and few are very weak student and needed one to one during tutorial and any opportunity to help them more.

From Gibbs Appendix B1 of the Reader page Reflection on my teaching: Short account of what took place The session started some 20 minutes late because the student are having some meeting with the business manager and missed their launch break. During lesson The student came late and session started late, thus my tutor arrived about 15 minutes early. So student though that the assessment is too easy, without actual complete it first. My observation Things I did before and during the lesson which should have help students to learn: During the session I followed my delivery plan and I offer some explanation about the main concepts of manufacturing accounts and show the format of manufacturing accounts Any unplanned things I did during the lesson which should have helped my students to learn: Brief statement of this work, describing: Thus also enable the student to make a link between this topic and other area of the syllabus.