Required: (a) Prepare the following control accounts in the cost ledger, showing clearly the double entries between the accounts, and the closing balances: Stores control Work in progress control Finished goods control Production overhead control (b) Explain the meaning of the balance on the production overhead control account. (10 marks) (2 marks) (c) When separate ledgers are maintained, the differing treatment of certain items may cause variations to arise between costing and financial profits. Examples of such items include stock valuations, notional expenses, and non-costing items charged in the financial accounts. Briefly explain the above three examples and state why they may give rise to profit differences. (3 marks) (Total 15 marks) CIMA Stage 1 Cost A