Intermediate : Accounting entries for a standard cost ing system Exe pic manufactures one standard product and operates a standard costing system . From the data given below, you are required to prepare accounts for the following material stores ;

wages ;

production overhead;

work in progress ;

finished good ;

cost of sales ;

profit and loss.

Standard /Budgeted data : The standard price of a tonne of material is £400 , and from each tonne it is expected that 50 units will be produced . A 40-hour week is operated by 20 employees, who receive a standard rate of pay of £4 per hour The standard performance is 40 units to be produced per hour Budgeted fixed production overhead for the year is £480000 and it is expected that 50 weeks will be worked .

Actual data: Dunng the ftrst week of October the actual materials bought and consumed were 35 tonnes at a price of £390 per tonne. No abnormal time resulted , but 5 employees were paid at £4.2 per hour. Production was 1660 units and the overhead incurred amounted to £9700. Sales were valued at £33200. There were no opening or closing stocks.