Accounting entries for a standard costing system 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:

Required:
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) areconciliation between these statements identifying all relevant variances.

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(1) Standard costs per 100 sets Raw materials: () Plaster of Paris, 20 kg at 8 per kg 160 Paint, 1/2 litre at 30 per litre Direct wages, 2 hours at 10 per hour Fixed production overheads, 400% of direct wages 15 25 100 300 3.80 (2) Standard selling price per set (3) Raw materials, work in progress and finished goods stock records are maintained at stan- dard cost. (4) Stock levels at the beginning and end of March were as follows: