Intermediate: Preparation of interlocking accounts from incomplete information

(a) Describe briefly three major differences between:

(i) financial accounting, and

(ii) cost and management accounting.

(6 marks)

(b) Below are incomplete cost accounts for a period:

During the period 64500 kilos of direct material were issued from stores at a weighted average price of £3.20 per kilo. The balance of materials issued from stores represented indirect materials.
75% of the production wages are classified as ‘direct’. Average gross wages of direct workers was £5.00 per hour. Production overheads are absorbed at a predetermined rate of £6.50 per direct labour hour.
Required:
Complete the cost accounts for the period.

Transcribed Image Text:

Stores ledger control account (000) 176.0 Opening balance Financial ledger control a/c Financial ledger control a/c Financial ledger control a/c Opening balance 224.2 Production wages control account (000) 196.0 Production overhead control account (000) 119.3 Job ledger control account (000) 114.9