Intermediate: 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:

(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 stan¬ dard 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 30000 sets. Actual sales, all made at standard selling price, and actual production were 28400 and 28 600 sets respectively.
(6) Raw materials purchased during the month were 5400 kg of plaster of Paris at a cost of £43 200 and 173 litres of paint at a cost of £5800.
(1) Direct wages were 730 hours at an average rate of £11 per hour.
(8) Fixed production overheads amounted to £34120.
Requirement:
Prepare for the month of March:

(a) the cost ledger accounts for raw materials, work in progress and finished goods;
(10 marks)

(b) fi) budget trading statement, (ii) standard cost trading statement, (iii) financial trading statement, and Civ) a reconciliation between these statements identifying all relevant variances.
(14 marks) (Total 24 marks) ICAEWAccounting Techniques

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Raw materials: Plaster of Paris, 20 kg at 8 per kg Paint, 1/2 litre at 30 per litre Direct wages, 2 hours at 10 per hour Fixed production overheads, () 160 15 25 400% of direct wages 100 300