4. Below are incomplete cost accounts for a period for which final accounts are to be prepared:

The closing stock balances are:
Stores ledger £12,000 Job ledger £10,000 80% of the production wages incurred are charged directly to jobs.
Production overheads are absorbed at a predetermined rate of 150% of direct wages, and selling and administration overheads at 10% of sales.
Required:

(a) Identify any distinguishing features of the cost accounting system.

(b) Complete the cost accounts for the period, by listing the missing amounts, determining the profitl(loss). and showing the balances to be carried forward to the following period.

(e) Provide a brief description of the accounting entries numbered (i) to (xii).

Transcribed Image Text:

Stores ledger control Opening balance 6,000 (ii) Job ledger control 19,000 (i) General ledger control 27,000 Production wage control (iv) General ledger control Production overhead control (!!!) 33 (vi) (vii) General ledger control Job ledger control Opening balance (ii) Stores ledger control (v) (x) 25,000 (v) (vi) 19,000 (x) 20,000 (xi) 19,000