Intermediate: Accounting entries for a standard costing system. Bronte Ltd manufactures a single product, a laminated kitchen unit with a standard cost of £110 made up as follows:

The standard selling price of the kitchen unit is £130. The monthly budget projects production and sales of 1000 units. Actual figures for the month of April are as follows:
Sales 1200 units at £132 Production 1400 units Direct materials 22000 sq. metres at £4 per sq. metre Direct wages 6800 hours at £11 Variable overheads £11 000 Fixed overheads £6000 You are required to prepare:

(a) a trading account reconciling actual and budgeted profit and showing all the appropriate variances; (13 marks)

(b) ledger accounts in respect of the above transactions.
(10 marks)
ICAEW Accounting Techniques*

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Direct materials (15 sq. metres at 3 per sq. metre) Direct labour (five hours at 10 per hour) Variable overheads (five hours at 2 per hour) () 45 50 10 Fixed overheads (five hours at 1 per hour) 5 110