The businesses which produce and sell the items prepare the following accounts at the end of its accounting year.

Contents of manufacturing account are:-
Raw materials
carriage inwards
Returns outwards
Goods drawings
Closing stock of raw materials
Cost of Direct Materials
Direct Labor
Direct Expenses
Factory lighting
Factory heating
Factory insurance
Factory rent
Factory maintenance
Factory indirect wages
Factory supervisor’s wages
Depreciation on plant & machinery
Depreciation on factory building
Depreciation on factory furniture
Depreciation on factory motor van
Depreciation on other factory fixed assets
Opening stock of work in progress
Closing stock of work in progress