Net result of a Manufacturing A/c is ____________.

Gross profit

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Cost of production

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Cost of sales

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Total expenditure

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Solution

The correct option is A Cost of production
A Manufacturing account is prepared with an object of finding out the cost of production. All the items of cost connected with the manufacturing process like cost of Raw Material, carriage, wages factory expenses etc are shown in the debit side of manufacturing account.
The main items on the credit side of manufacturing account is the closing stock of raw material. The balance will represent the cost of production.

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