Page 286 - BA2 Integrated Workbook STUDENT 2018

Fundamentals of Management Accounting

CHAPTER 8 – INTEGRATED ACCOUNTING SYSTEMS

8.1 XYZ operates an integrated accounting system. The following information is
available for period 7:
$
Cost of finished goods produced 1,241,500

Direct wages 173,400
Direct material issues 598,050
Indirect material issues 32,800
Direct material purchases on credit 617,300

Production overheads (actual expenditure) 359,725
Depreciation of production machinery 35,000

At the beginning of the period, the relevant account balances were:

Work in progress control $125,750

Direct material stores control $ 48,250

Production overheads are absorbed on the basis of 280% of direct wages cost.
Any production overheads under or over absorbed for the period are transferred
to the statement of profit or loss at the end of the period.

Direct material stores control account

$ $
Balance b/f A Work in progress B
Payables C Production overhead control D

The values that would be entered as A, B, C and D in the above account
extract are:

A ________

B ________

C ________

D ________

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