Concept:Carriage inwards is the transport charge paid to bring raw materials into the factory, so it is a direct part of the cost of raw materials.
Explanation:Carriage inwards is the transport cost borne by the buyer for moving purchased goods to the business.
When the goods are raw materials meant for production, this charge is a direct production cost, not an office or selling expense.
In the manufacturing account, carriage inwards is added to the opening stock of raw materials and to purchases of raw materials.
This makes it part of the cost of raw materials consumed, which is used to determine the cost of production.
The trading account deals with sales and gross profit, while the profit and loss account covers operating expenses.
Therefore, carriage inwards on raw materials belongs only in the manufacturing account.
Answer:D. Manufacturing account.