Manufacturing Accounts: JAMB Principles of Accounts Questions, Answers & Notes

What Manufacturing Accounts covers in the JAMB Principles of Accounts syllabus

A manufacturing account is prepared by a business that makes its own goods, to find the cost of production (cost of goods manufactured). Costs are direct — traceable to the product: direct materials (raw materials consumed = opening + purchases + carriage inwards − closing), direct labour and direct expenses, together making the prime cost — and indirect (factory overheads): factory rent, power, indirect materials/labour and depreciation of factory machinery. Prime cost + factory overheads = factory (production) cost, adjusted for work-in-progress (partly finished goods). A manufacturer holds three stocks: raw materials, work-in-progress and finished goods. The cost of goods manufactured is transferred to the trading account (finished goods are valued at production cost), while selling and distribution expenses go in the profit and loss account. Cost per unit = total production cost ÷ units produced.

For Manufacturing Accounts, JAMB expects you to be able to:

• Explain the purpose of the manufacturing account and cost of production
• Compute prime cost, factory overheads and factory (production) cost
• Distinguish direct/indirect costs and the three kinds of stock

Key facts & revision notes: Manufacturing Accounts

These are the recurring points our Manufacturing Accounts questions test — revise them until each feels automatic, then practise the questions above to lock them in.

• A manufacturing account is prepared by a business that manufactures (produces) its own goods.
• The manufacturing account finds the total cost of production (cost of goods manufactured).
• Direct costs can be traced directly to the product (e.g.
• direct materials, direct labour).
• Prime cost = direct materials + direct labour + direct expenses.
• Factory overheads are indirect production costs (factory rent, power, depreciation of machines).
• Factory (production) cost = prime cost + factory overheads.
• Cost of raw materials consumed = opening raw materials + purchases − closing raw materials.
• Work-in-progress is partly completed goods at the period end.
• Direct labour is the wages of workers directly involved in making the product.
• Depreciation of factory machinery is a factory overhead in the manufacturing account.
• The cost of goods manufactured (production cost) is transferred to the trading account.
• Factory cost = prime cost + factory overheads = 40,000 + 10,000 = #50,000.
• Carriage inwards on raw materials is added to the cost of raw materials/purchases.
• Selling and distribution expenses go in the profit and loss account, not the manufacturing account.
• Finished goods manufactured are valued at their production (factory) cost.
• A manufacturer holds raw materials, work-in-progress and finished goods stock.
• Indirect materials are treated as part of factory overheads.
• A factory supervisor's wages are indirect labour — part of factory overheads.
• Cost per unit = total production cost ÷ number of units produced.
• The manufacturing account determines the cost of producing (manufacturing) the goods.

Worked examples

Three Manufacturing Accounts questions with the answer and a short explanation, so you can see how the topic is set before you practise the full set.

How Manufacturing Accounts is tested in JAMB Principles of Accounts

Our Manufacturing Accounts bank holds 20 questions (3 medium, 17 hard). JAMB Principles of Accounts typically returns to Manufacturing Accounts year after year, so steady practice on this topic is high-value revision. Questions are multiple-choice with four options, and at UTME pace you get roughly 40 seconds each — which is why timed practice matters.

How to answer Manufacturing Accounts questions

Work the stem first and predict the answer before you look at the options; then eliminate the ones that contradict the key facts above. Watch for “which is not…”, “all of the above” and “except” style stems, which are where rushed candidates lose easy marks on Manufacturing Accounts. If a calculation or a precise definition is involved, work it from first principles rather than guessing from a half-remembered rule. When two options look right, re-read the stem for the qualifier that separates them — JAMB rarely repeats an option by accident. If you are still unsure, eliminate the two weakest choices to lift your odds, flag the question, and move on; never burn a full minute on one Principles of Accounts item when the exam gives you about forty seconds each. Then come back to flagged questions with whatever time remains. The single most reliable way to get faster at Manufacturing Accounts is repeated timed practice, so use the button above until the recurring patterns feel automatic.

Common mistakes to avoid in Manufacturing Accounts

The errors that cost marks on Manufacturing Accounts are usually careless rather than conceptual: misreading a negative stem, confusing two similar terms, or rushing a definition you actually know. Candidates also over-rely on “expo” and last-minute cramming instead of understanding the topic — which fails the moment JAMB rephrases a familiar idea. Treat every option as a claim to be checked against the facts above, keep your working tidy for any calculation, and don’t change a considered answer on a hunch. Above all, revise Manufacturing Accounts actively by answering questions, not just by re-reading notes — recall under time is what the exam rewards.

Frequently asked questions

Is Manufacturing Accounts part of the JAMB Principles of Accounts syllabus?

Yes. Manufacturing Accounts is a recognised topic in the JAMB Principles of Accounts syllabus, covering explain the purpose of the manufacturing account and cost of production. You should be able to recall its key facts and apply them to multiple-choice questions.

How many Manufacturing Accounts questions can I practise on Belmadeng?

There are 20 original, JAMB-standard Manufacturing Accounts questions in our free bank, each with the correct answer and a worked explanation. You can practise them untimed or as a timed test.

What are the most important points to know about Manufacturing Accounts?

A manufacturing account is prepared by a business that makes its own goods, to find the cost of production (cost of goods manufactured). Costs are direct — traceable to the product: direct materials (raw materials consumed = opening + purchases + carriage inwards − closing), direct labour and direct…

How do I answer Manufacturing Accounts questions quickly in JAMB?

Read the stem carefully, eliminate clearly wrong options, and match the remaining choices to the key facts for Manufacturing Accounts. Practising timed Manufacturing Accounts questions builds the speed you need for UTME's pace of about 40 seconds per question.

Are these JAMB Principles of Accounts Manufacturing Accounts questions past questions or original?

They are original questions written to JAMB (UTME) standard and mapped to the official syllabus — not reproduced past papers. This keeps them legal to use freely while closely mirroring how the real exam tests the topic.

Where can I practise Manufacturing Accounts questions free without signing up?

Right here — tap “Start Manufacturing Accounts practice” on this page to begin instantly. Belmadeng's CBT practice is completely free and needs no sign-up, download or subscription.

About these questions: original, JAMB-standard items written from the official UTME Principles of Accounts syllabus (last reviewed 2026-09-18). Belmadeng is an independent study platform and is not affiliated with JAMB. Spotted an error? Use the report link.