Manufacturing Process Work in progress refers to the expenses tied to incomplete items within the Manufacturing Processjourney, encompassing labor, raw materials, and overhead costs. It is considered to be a current asset on the balance sheet because it is expected to be converted into cash within one year. The amount of WIP on the… Read More »
The functions of the accounts receivable The functions of accounts receivable in accounting are as follows: 1.Recording Sales: Accounts receivable records the amount of money owed to a business by customers for goods or services sold on credit. It serves as a record of credit-based sales made by the business. 2.Payment Tracking: Accounts receivable tracks… Read More »
Do manufacturing expenses come under trading account No, Manufacturing expenses are not included in the trading account, which is a component of a business’s final accounts used to determine the gross profit or loss. It includes all the direct expenses and revenues related to the purchase and sale of goods during a particular period. For… Read More »