Concept:The manufacturing account records only costs directly connected with production.
Raw materials and production-related expenses belong in it.
Explanation:Item i, purchases of raw materials, is a direct production cost.
So it is shown in the manufacturing account.
Item iii, carriage inwards, is the freight paid to bring raw materials to the factory.
Therefore it is also a production cost and is included.
Item ii, purchases of finished goods, is not a manufacturing cost.
It belongs to the trading account because the goods are already made.
Item iv, carriage outwards, is the cost of delivering finished goods to customers.
This is a selling and distribution expense, not a manufacturing cost.
Hence, only items i and iii appear in the manufacturing account.
Answer:B. I and III only