PoA - May 2023 P2 Q3 - Manufacturing accounts | Accounting concepts

[@ChristianBarakat-uf7vv]

This was such an excellent explanation and easy to understand thank you!!

[@adapttuition]

Glad it was helpful!

[@brianmusonda5922]

Still your number one follower mate

[@adapttuition]

Thanks, Brian 😊 I really appreciate that ❤️

[@Bunix18]

Sir I noticed a minor error . In the manufacturing accounts the balance for the total factory overheads was understated. Shouldn't it have been $104,700?

[@adapttuition]

Hey Mikah :-) Could you explain why you think it's an error? And where $104,700 came from? Thanks 🙂

[@trinityhamied]

thank youuu, your videos are always so so helpful.

[@adapttuition]

Always happy to help, Trinity 😊

[@daniquearthurs6888]

Been waiting months for this

[@adapttuition]

Sorry to keep you waiting :-) Hope you find it helpful and please feel free to let me know if you have any questions

[@user-kn5uf2ez6i]

For 3Cii. would realisation concept be correct? Becasue they are not recording the transaction until it is sure to happen.

[@adapttuition]

I think this might work, yes.

[@shauneljames3301]

Hi sir, wouldn't carriage inwards be in the income statement because they didn't specify that it was "carriage inwards for raw materials."? 3:14

[@adapttuition]

Ok 😊 Carriage inwards is a delivery charge we pay to have either goods for resale or raw materials for production brought to us. Now since we are dealing with a manufacturing entity and not a trading entity (one which buys and resells finished goods), let me put a question to you 😊 To what exactly does the carriage inwards apply? There isn’t any purchase of finished goods… so it can’t be that 🤔 What did we purchase? Raw materials …? Yes ✅ Since this was the only item we purchased it stands to reason that this is the only thing to which the carriage inwards can apply. So specifying “carriage inwards on Raw materials” wasn’t necessary. But I understand why you asked, because I have seen them specify that / use that phrase in other questions. But it is always a good idea to read the question thoroughly just to be sure what they mean/what info they’ve actually given you. Hope that helps.

[@shauneljames3301]

@@adapttuition Yes sir, this helped a lot. Thank you!

[@adapttuition]

@@shauneljames3301 glad to hear!

[@kaylafraser544]

Can u show how u get the 36000 in the comments section please

[@adapttuition]

Hi Kayla, I explain this between 04:20 and 04:44 in the video

[@ChristianBarakat-uf7vv]

This was such an excellent explanation and easy to understand thank you!!

[@adapttuition]

You're very welcome!