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WAEC Financial Accounting 2020 Question 28

Question 28

Manufacturing Accounts

Items shown in manufacturing account include I. Purchases of raw materials II. Purchases of finished goods III. Carriage inwards IV. Carriage outwards

  1. A.I and II only.
  2. B.I and III only.
  3. C.I, II and III only.
  4. D.I, III and IV only.
Show the answer and explanation

Answer: B (I and III only.)

Explanation

Raw material purchases and carriage inwards on them belong in manufacturing; finished goods purchases go to trading and carriage outwards to profit and loss.