Below are incomplete cost accounts for a period for which final accounts are to be prepared:
Stores ledger control
Production wage control
Production overhead control
Job ledger control
Selling and administration overheads
Cost of sales
Sales
General ledger control
The closing stock balances are: Stores ledger £12,000 Job ledger £10,000 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.
(b) Complete the cost accounts for the period, by listing the missing amounts, determining the profit/(loss). and showing the balances to be carried forward to the following period.
(c) Provide a brief description of the accounting entries numbered (i) to (xii).