Manufacturing Account

Explanation:
The manufacturing account is a type of financial statement that is used by manufacturing companies to calculate the cost of goods manufactured during a specific period. It helps in determining the cost of production and provides valuable information about the company's manufacturing activities. The main purpose of preparing a manufacturing account is to ascertain the cost of the manufactured goods.

Key Points:
- The manufacturing account includes all the direct costs incurred in the production process, such as direct materials, direct labor, and factory overheads.
- It does not include any indirect costs or expenses that are not directly related to the production process.
- The manufacturing account calculates the total cost of goods manufactured by adding up all the direct costs incurred during the production process.
- It helps in determining the cost per unit of the manufactured goods by dividing the total cost of goods manufactured by the total number of units produced.
- The manufacturing account does not include any sales revenue or profit/loss calculations. Its main focus is on determining the cost of production.

Advantages of Manufacturing Account:
- Helps in determining the cost of production accurately.
- Provides valuable information about the company's manufacturing activities.
- Helps in making informed decisions regarding pricing, cost control, and production efficiency.
- Enables comparison of the cost of production with the sales revenue to determine the profitability of the manufacturing process.

Conclusion:
The correct answer is option 'B' - Ascertain the cost of the manufactured goods. The manufacturing account is prepared to determine the cost of production and does not include any calculations related to profit/loss or sales revenue. It helps in accurately calculating the cost of the manufactured goods and provides valuable information about the company's manufacturing activities.