Accounts for manufacturing enterprises using schedules:

(a) Schedule of Cost of Goods Manufactured

$ $ $

DIRECT MATERIALS:

raw materials on hand b/f X

add raw materials purchased X

add transport on raw materials X

less returns on materials (X)

net raw materials purchased X

raw materials available for production X

less raw materials on hand c/d (X)

raw materials used in production A

DIRECT LABOUR (calculated data) B

* PRIME COST C

MANUFACTURING OVERHEADS:

[factory-based expenses & adjustments] (calculated data) x

[indirect labour] (calculated data) x

[indirect materials] (calculated data) x

total overhead expenses D

* MANUFACTURING COST E

WORK-IN-PROGRESS:

add work-in-progess b/f x

less work-in-progress c/d (x)

net work-in-progress F

* COST OF GOODS MANUFACTURED G

add factory profits (x% mark-up) x

* COST OF PRODUCTION H

(b) Schedule of Cost of Goods Sold

$ $ $

finished goods on hand b/f X

add cost of manufactured goods (transfer) X

add carriage on goods transferred X

add additional goods purchased X

net finished goods available X

less finished goods on hand c/d (X)

COST OF FINISHED GOODS SOLD I

(c) The Income Statement

$ $ $

TURNOVER:

sales x

less returns and allowances (x)

net sales J

less COST OF GOODS SOLD (transfer) I

* GROSS MARGIN K

less NON-MANUFACTURING OVERHEADS

selling & distribution expenses x

administrative expenses x

total expenses L

* NET PROFIT M

add factory profit (transferred) x

less factory profit unrealized x

net factory profit realized N

* NET INCOME O