Accounting Grade 11 September Test 2016 Paper & Memo

Downloaded from hlayiso.com Accounting Page 1 of 6 Third Control Test: 2016 education Department: Education REPUBLIC OF SOUTH AFRICA eel ELLE LLL LLC LLL! + GREENBURY SECONDARY SCHOOL ACCOUNTING: GRADE 11 THIRD CONTROL TEST: 2016 ALLL LOt errr LT e + aNGeSeo ee + ° UL TUECO LOL OLeCerererertrereriitrrrrrrrrrrtrrrre rt Terr tr? td EXAMINER : C. MAHARAJ DURATION : 1 HOUR MODERATOR : A.RAJOO MARKS: 100 INSTRUCTIONS TO LEARNERS: 1. This paper consists of 6 pages. 2 Answer ALL questions on the special answer booklet provided. 3. Show all workings so that part marks can be allocated. 4. C) You must attempt to comply with the suggested time allocations. QUESTION | TOPIC MARKS SUGGESTED TIME Manufacturing 50 30 minutes 2 Cash Budgets 30 18 minutes Periodic Inventory Systems 20 12 minutes 60 minutes Total Greenbury Secondary Grade: 11 Please Turnover

Downloaded from hlayiso.com . Accounting Page 2 of 6 Third Control Test: 2016 QUESTION ONE: MANUFACTURING [ 50marks: 30 minutes] The following information relates to Woof Dog Food Manufactures for the year ended 30 June 2016. The business makes nutritious dog food. Required : 1.1. Calculate the Direct Labour Cost. (Refer to information 4) (6) 1.2. Prepare the following accounts in the General Ledger for the year ended 30 June 2016: ¢ Raw Material Stock Account (10) e Factory Overheads Account (25) NB: accounts to be properly balanced / closed off 1.3. Calculate the Unit Cost of producing a complete box of dog food. (5) 1.4, Give two reasons why using a local supplier is likely to reduce the unit cost calculated above. . (4) © Information : 1. Information relating to the production of dog food for the year ending 30 June 2016, Number of finished boxes of dog food produced 60 000 Number of units sold 60 000 2. Stock at beginning and end of financial year: 1 July 2015 30 June 2016 Raw materials(ingredients and cardboard boxes) 150 000 200 000 Work in process 64 000 741 146 | Finished goods Nil Nil C \ Indirect material stock(factory) 2100 3 400 Stock of packing material for deliveries to 8 000 5 000 customers 3. Details in respect of Raw Materials: Raw materials include the ingredients (bought from a local supplier) and cardboard box containers (boxes are imported from Japan) 3.1. Ingredients bought during the year on credit, R 408 000. This is delivered free of charge. 3.2. Returned defective stock to the supplier, R 14 000. 3.3. Bought 20 000 cardboard boxes from Japan at a total cost of 50 000 Japanese yen Paid by cheque. (¥ 50 000) The exchange rate is as follows:: One Japanese yen = R7.30 (¥ 1=R7.30) (Currency of Japan is yen) Greenbury Secondary Grade: 11 Please Turnover

3.4, 3.5. 4. 4.4. 4.2. 4.3, 4.4, vA Downloaded from hlayiso.com Accounting Page 3 of 6 Third Control Test; 2046 Import duties paid are calculated at 10%. Transportation cost paid on boxes, R12 600. Wages and Salaries are as follows: « There are 8 factory workers who are each required to work 2 120 hours for the period ending 30 June 2016. © Their normal time rate is 40 per hour. 6 of the workers had worked a total of 90 hours of overtime each. ¢ The overtime rate is one and a half times the normal time rate. The factory foreman is paid a fixed salary of R 12 000 per month. He gets a bonus equal to an additional months’ salary. The cleaner is paid a fixed salary of R3 000 per month. This is split among the factory, office and sales department in the ratio of 3:1:2 Contributions by the business: ¢ All employees contribute to UIF. The business contributes 1 % and this is calculated on basic salary/ wage, ¢ The business contributes to the foreman’s pension fund and is calculated at 12 % of basic salary. Electricity and water paid for the financial year amounted to R 320 000. Allocation is as follows: « Factory 70% * Office 10% ® The remaining amount is allocated to the sales department. The following items were purchased for cash during the financtal year: e Indirect materials R 6 200 e@ Packing material R 3 200 Rent for the year totalled R 199 500. The rent for July 2016 was paid in advance. The rent increased by 10 % on 1 May 2016. The rent is apportioned according to floor space. The factory occupies 300 sqm? out of a total of 400 sqm?. Depreciation for the financial year was calculated s follows: e Factory plant R 150 000 e Delivery vehicles R 80 00 (used only for deliveries to customers) ® Office equipment R 12 000 All other expenses totalled R 180 000 for the year. This must be shared as follows: © Factory 60 % « Sales 20% * Office 20 % Greenbury Secondary Grade: 11. Please Turnover

Downloaded from hlayiso.com tos Accounting Page 4 of 6 Third Control Test: 2016 QUESTION TWO : CASH BUDGET [30 marks; 18 minutes] You are provided with the Cash Budget and related information of CBS Traders for two months ended 30 April 2017. The business is owned by Mr. C.B Singh. Required : 2.1, Complete the Debtors Collection Schedule for April 2016. Some figures are inserted on (8) answer booklet. 2.2. Calculate the missing amounts indicated A to G in the Cash Budget for March and April. (14) 2.3. Refer to information I. Comment on each item (quote figures) and provide one point of advice in each case. (6) 2.4. List two items that will be included in the Projected Income Statement but not on the Cash Budget. (2) Information : A, B. c D. Extract from Cash Budget for the two month period ended 30 April 2017. ( Receipts March 2017 April 2017 Cash Sales A 237 600 Collection from Debtors 144 400 B Rent income 3 000 7 Cc Loan 180 000 Total Receipts Payments Cash Purchases D 257 500 Payments to Creditors 32 250 28 250 Salaries and wages 61 240 61 240 ; Repayment of loan E ( Interest on loan F Insurance G 6 100 Drawings 20 000 20 000 Sundry expenses 18 000 18 000 Total Payments Cash sales amounts to 60 % of total sales. Total sales for February 2017 were R 380 000. Collection from debtors : « 45% settle accounts in the month of sales and receive a 5 % discount. * 50% settle in the accounts in the month following the sales. © 5% is written off. Greenbury Secondary Grade: 11 Please Turnover

; Downloaded from hlayiso.com Accounting - Page 5 of 6 Third Control Test: 2016 E. 10% of trading stock is bought on credit. Creditors are paid in full in the month following purchases. F. Insurance increased by 25 % on 1 April 2017. G. Aténant rented a storage room in the building. He is expected to move in on the 15 March 2017 and is required to pay only half the rent amount. He was informed that the rent increases by 5.5 % on 1 April each year. H. A loan will be acquired on 1 April 2017. The interest on loan is 10.5% p.a. ¢ The loan is to be repaid in 24 equal monthly instalments commencing on 30 April 2017. ¢ Interest on loan is also payable at the end of each month commencing on | 30 April 2017. ; I, The owner is concerned about the following items which were budgeted for February 2017. Item Budget Actual } Payment to creditors 39 400 15 600 Insurance 2 260 0 Greenbury Secondary Grade: 11 Please Turnover

Downloaded from hlayiso.com so Accounting: Page 6 of 6 Third Contro! Test; 2016 QUESTION THREE: PERIODIC INVENTORY SYSTEM [20marks; 12 minutes] The information below was taken from the books of Super Sport Stores, ; The business uses the periodic inventory system and a mark up of 25 % on the cost price. Required: 3.1. Calculate the cost of sales for the year. (13) Show all workings 3.2. Calculate the gross profit. (4) 3.3. Calculate the mark- up achieved by the business. (3) Information : The following balances appeared in the Pre- Adjusted Trial Balance on 31 December 2016 The financial year ends on 31 December. ) Trading stock( 1 January 2016) 481 000 Purchases 300 000 Sales 913 500 Debtors allowances 23 700 Carriage on purchases 5 700 Carriage on sales 1500 | Customs duty 5 400 Adjustments and Additional information No entries were made for the following transactions. 1. Stock with a cost price of R 1 280 was donated to a home for street children. 2. — Received an invoice from Nike Transporters for transportation of goods to: ( ) >» To Super Sport Stores R 360. > To customers, R 680. The owner took goods for personal use, selling price R750. Cost price???? Goods valued at R 15 400 were defective and was returned to the supplier. 3 4. 5. Bought goods on credit from Puma Ltd for R 78 000. 6. Sold goods on credit to a debtor, A. Adidas for R 10 200. 7. >> ~ Physical stock taking shows the value of stock on hand as at 31 December 2016, R:160:900,-- — GREENBURY SECONDARY SCHOOL al DERARTME RT 6 COMMERCE WY IO eR Co MAH ARAL Greenbury Secondary Grade: 12. Wey M

Accounting Page 1 of 5 Third Control Test: 2016 education Department: Education REPUBLIC. OF SOUTH AFRICA ' GREENBURY SECONDARY SCHOOL ‘ . | | THIRD CONTROL TEST: 2016 i | . i ACCOUNTING I 3 . ; ANSWER BOOK . | GRADE 11 : me oe we oe ene A NAME OF LEARNER: GRADE: 11 -y QUESTION MAX. FINAL MARKS 1 50 2 30 3 20 100 | This answer book consists of 5 pages. Greenbury Secondary Grade: 11 Please Turnover

__ Downloaded from hlayiso.com cs Accounting , Page 2 of 5 Third Control Test: 2016 QUESTION ONE: MANUFACTURING { 50marks: 30 minutes] 1.1. Calculate the Direct Labour Cost. (Refer to information 4) 6 CIN ARETE EN NTA SAE RS ements | Raw Materials Stock | a) A RISER CHAT NAT eaten 10 Factory Overhead Cost 25 Greenbury Secondary Grade: 14 Please Turnover.

Accounting 1.3. Calculate the Unit Cost of producing a complete box of dog food. Downloaded from hlayiso.com Page 3 of 5 Third Control Test: 2016 5 1.4, Give two reasons why using a local supplier is likely to reduce the unit cost calculated above, e 4 ° | 6) Total Marks | 50 | i | QUESTION TWO : CASH BUDGET [30 marks; 18 minutes] 2.1. Complete the Debtors Collection Schedule for April 2016. ‘@) Credit Sales March April February * 76 000 - March 160 000 68 400 * 8 April * * 144 400 * Greenbury Secondary Grade: 11 Please Turnover |

Downloaded from hlayiso.com Page 4 of 5 Accounting Third Control Test: 2016 2.2. Calculate the missing amounts indicated A to F in the Cash Budget for March and April. Workings Answer A 14 2.3. Refer to information I. Comment on each item (quote figures) and provide one point of advice in each case. item Comment Advice Payment to creditors 6. Insurance : mae 2.4, List two items that will be included in the Projected Income Statement but not on the Cash Budget. e Total Marks 30 Greenbury Secondary Grade: 11 Please Turnover

Downloaded from hlayiso.com Accounting Page 5 of 5 Third Contral Test: 2046 QUESTION THREE: PERIODIC INVENTORY SYSTEM [20marks; 12 minutes] 3.1. Calculate the cost of sales for the year. Show all workings 13 3.2. Calculate the gross profit. ) 4 3.3. Calculate the mark- up achieved by the business. 3 Total Marks 20 GREENBURY SECONDARY SCHOOL DEPARTMENT OF COMMERCE & 4.0.1 MRS C MAHARAJ Greenbury Secondary Grade: 11.

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| Accounting | | | Downloaded from hlayiso.com PANE SA 100 100 GRADE: 11 a Greenbury Secondary aiid Y Page 1 of 5 education Third Control Test: 2016 Department: Education REPUBLIC OF SOUTH AFRICA GREENBURY SECONDARY SCHOOL THIRD CONTROL TEST: 2016 ACCOUNTING ANSWER BOOK GRADE i1 QUESTION MAX, FINAL MARKS 4 50 50 2 30 30 3 20 20 100 100 Grade: 11 GREENBURY SECONDARY SCHOOL This answer book consists of 5 paces GEN, DEPARTMENT OF COMMERCE Please Turnover

Downloaded from hlayiso.com Page 2 0f 5 Accounting QUESTION ONE: MANUFACTURING 1.1. Calculate the Direct Labour Cost. (Refer to information 4) Third Control Test: 2016 [ 50marks: 30 minutes] Normal time: 8x2120x40 678.400 f/ 6 Overtime : 6 x 90 x 60 32400 47 6 UIF Contributions { 678 400 x 1/100) 6734S ZN 717584 |Y/ _— _ — Raw Materials Stock 1 | Balance b/d 150.0004 Creditors control 44 000/ P Creditors Control 408 0007 Raw material issued 7 758 10Y Bank (50 Q00 x 7.30) 365 0004 Balance c/d 200 000 Bank (365 000x 10/100) 36 500 7 = fp. Bank 12.600 7 972 100 972 100 Balance b/d 200 000/ 10 10 Factory Overhead Cost Foreman salary, // 174720 Work in process / 817 050 144 fo 2a see 90 J J Indirect labou, 18 180 (36 onkes des / C Electricity & water 224 000 ae | mente / Indirect materials 4 900 @ val, «2b ‘in, / Rent (199400- 16 {0)x300/400 137 2507 Depreciation 150 000 | Other expenses “108 000 — _ (ave seuney es wa es es ee en fa 817 050 817 050 —— _ Lec tmnecammcrunmsa 25 25 Greenbury Secondary Grade: 11 Please Turnover

Downloaded from hlayiso.com Accounting Page 3 of 5 Third Control Test: 2016 1.3. Calculate the Unit Cost of producing a complete box of dog food. total cost of production of finished goods number of units ppgiluced J 5 Unit cost = : ° ' __788 100-+717 5844817 050+64 000-71 146 ~ 60000 7 5 = R38.09 ? 1.4, Give two reasons why using a local supplier is likely to reduce the unit cost calculated above. © No import duties / custom duties incurred LY 4 4 @ No exchange rate fluctuations 4 ; Total Marks CG 50 50 QUESTION TWO : CASH BUDGET [30 marks; 18 minutes] 2.1. Complete the Debtors Collection Schedule for April 2016. ( .) Credit Sales March April February | *152000 //, 76 000 - 8 March 160 000 68 400 *80 000 SS 8 April *158 400 “/ *67 716 JS P 144400 | *147 716 | Greenbury Secondary Grade: 11 Please Turnover

Downloaded from hlayiso.com Accounting Page 4 of 5 Third Control Test: 2016 2.2, Calculate the missing amounts indicated A to F in the Cash Budget for March and April. Workings Answer A | 160 0000 100 = 400 000 x 60/ 100 240 000 L B 147 716 @ Cc 3 000 + 3 000 = 6000 x 1.055 6 330 y) : 4 14 D 28 250 x 100/10 = 282 500 x 90 /100 254 250 14 O/ E 180 000/ 24 7500 Z F 180 000 x 10.5/ 100 x 1/12 1575 / / Lv G 6 100 x 100 / 125 4 880 oy 2.3. Refer to information I. Comment on each item (quote figures) and provide one point of advice in each case. item Comment Advice Payment to ; | Investigate why creditors are creditors Overbudgted by R23 800 not being paid, could be charged interest. Budget not done realistically , | . . Suppliers will stop selling to business. 6 Overbudget by R 2 260° Monies not used for + . : 6 Insurance insurance, Policy will lapse, could face increased premiums in future. 2.4. List two items that will be included in the Projected Income Statement but not on the Cash Budget. ve Depreciation © Discount allowed ¢ Drawings of stock 2 e Bad debts e Discount received ° Profit / loss on sale 2 Total Marks 30 30 Greenbury Secondary Grade: 11 Please Turnover -

Downloaded from hlayiso.com Accounting Page 5 of 5 Third Control Test: 2016 QUESTION THREE: PERIODIC INVENTORY SYSTEM [20marks; 12 minutes] Greenbury Secondary Grade: 11 3.1. Calculate the cost of sales for the year. Show all workings Opening stock 481 000 Pening pf f/f i / Add: Purchases (300 006 — 1 280 — 600~ 15 460 + 78 000) 360720 (/) [ Carriage on purchases (5 700+ 360) 6 060 W, Customs duty (5 400 ) 5400 A 13 853 180 13 | Less: Closing stock (160 900) / Cost of sales 692 280 Q 3.2. Calculate the gross profit. ) Gross Profit = sales ~-costof yes = (913 500-23 706+ 107200) - 692 280 = R 207720 o} 4 4 3.3. Calculate the mark- up achieved by the business. cere ae ZEOSS. profit 3 Mark-up = cost of sales x 100 _, 207720 3 ~ 692 mop x 100 ) = 30% a Total Marks 20 20

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