Fischer Ltd manufactures a range of chess sets, and operates a standard costing system. Information relating to the Spassky design for the month of March is as follows:
1 Standard costs per 100 sets

2 Standard selling price per set £3.80
3 Raw materials, work in progress and finished goods stock records are maintained at standard cost.
4 Stock levels at the beginning and end of March were as follows:

There was no work in progress at either date. .
5 Budgeted production and sales during the month were 30 000 sets. Actual sales, all made at standard selling price, and actual production were 28 400 and 28 600 sets
respectively.
6 Raw materials purchased during the month were 5400kg of plaster of Paris at a cost of £43 200 and 173 liters of paint at a cost of £5800.
7 Direct wages were 730 hours at an average rate of £11 per hour.
8 Fixed production overheads amounted to £34 120.
Prepare for the month of March:
(a) The cost ledger accounts for raw materials, work in progress and finished goods; (10 marks)
(b)(i) Budget trading statement,
(ii) Standard cost trading statement,
(iii) Financial trading statement, and
(iv) A reconciliation between these statements identifying all relevant variances.

Transcribed Image Text:

Raw materials: Plaster of Paris, 20kg at £8 per ㎏ Paint, litre at £30 per litre 160 15 25 Direct wages, 2½ hours at £10 per hour Fixed production overheads, 400% of direct wages 100 300 1 March 31 March 2800 kg 2780 kg Plaster of Paris Paint Finished sets 140 litres 900 sets 170 litres 1100 sets