Concept:Manufacturing account is prepared to determine the cost of producing goods.
Explanation:The manufacturing account records direct materials, direct labour, and factory overheads.
It calculates the total production cost of finished goods during a financial period.
This total is known as the
cost of goods manufactured or
cost of production.
It does not include administrative or selling expenses, which belong to the profit and loss account.
Hence, the purpose is not to find profit on goods sold but to find the cost incurred to produce them.
Answer:Option B. cost of goods produced