Intermediate: Interlocking cost accounts Below are incomplete cost accounts for a period for which final accounts are to be prepared

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. (4 marks)

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Opening balance (1) General ledger control (iv) General ledger control Stores ledger control 6000 (ii) Job ledger control 19000 27000 (iii) Production wages control 25000 (v) (vi) Production overhead control 35 (iii) (vi) (vii) General ledger control Opening balance (ii) Stores ledger control 833. (v) (x) (x) 26000 Job ledger control 20 000 19000 (xi) Selling and administration overheads (viii) General ledger control 12000 (xii) Cost of sales (xi) (xii) (ix) Sales Sales (ix) General ledger control 110000 General ledger control 110000 Opening balance 26000 (i) Stores ledger control 27 000 (iv) Production wage control 25000 (vii) Production overhead control 26000 (viii) Selling and administration overhead 12000