# Accounting Grade 12 Paper 2 KwaZulu Natal Mock 2021 Memo > Grade 12 Accounting Paper 2 memorandum from the KwaZulu Natal Mock Exam 2021, 34 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-grade-12-trial-2021-p2-and-memo/c195e077-83a4-4266-b499-871070bafdd8 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Memorandum - Year: 2021 - Exam period: KwaZulu Natal Mock Exam - Paper: 2 - Curriculum: CAPS - Pages: 34 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Accounting](https://www.hlayiso.com/library/grade-12/accounting) › [Accounting Grade 12 Paper 2 KwaZulu Natal Mock 2021 Memo](https://www.hlayiso.com/library/accounting-grade-12-trial-2021-p2-and-memo/c195e077-83a4-4266-b499-871070bafdd8) ## About this document Accounting · Grade 12 · KwaZulu Natal Mock Exam · 2021. Memorandum, 34 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING P2 SEPTEMBER 2021 MARKS: 150 TIME: 2 hours This question paper consists of 14 pages, a formula sheet and a 10-page answer book. Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com Accounting/P2 2 DBE/September 2021 NSC INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL questions. 2. A special ANSWER BOOK is provided in which to answer ALL questions. 3. Show ALL workings to earn part-marks. 4. You may use a non-programmable calculator. 5. You may use a dark pencil or blue/black ink to answer questions. 6. Where applicable, show ALL calculations to ONE decimal point. 7. If you choose to do so, you may use the Financial Indicator Formula Sheet attached at the end of this question paper. The use of this formula sheet is NOT compulsory. 8. Write neatly and legibly. 9. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION TOPIC MARKS MINUTES 1 Manufacturing 45 35 2 Debtors' Reconciliation and VAT 40 30 3 Stock Valuation 30 25 4 Budgeting 35 30 TOTAL 150 120 Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Accounting/P2 3 DBE/September 2021 NSC KEEP THIS PAGE BLANK. Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Accounting/P2 4 DBE/September 2021 NSC QUESTION 1: MANUFACTURING (45 marks; 35 minutes) 1.1 Choose the cost item in the list provided that matches the example below. Write only the cost item next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK. indirect labour; direct labour; direct materials; indirect materials 1.1.1 Cleaning materials used in the factory 1.1.2 Salary of the factory foreman 1.1.3 Cost of the raw materials used in the production process (3 x 1) (3) 1.2 AFRESH CREATIONS Afresh Creations manufacture one type of bath towels. The financial year ended on 29 February 2020. REQUIRED: 1.2.1 Calculate the direct material cost. (4) 1.2.2 Prepare the Production Cost Statement for the year ended 29 February 2020. (18) 1.2.3 Refer to Information C. Normal time for all workers is 40 hours per week. The information provided in James' job card for the last week is a reflection of his attendance over the financial year. Identify TWO concerns regarding the above situation. Also provide ONE suggestion to address the concerns identified. (6) INFORMATION: A. Stock balances: 29 FEBRUARY 2020 1 MARCH 2019 Raw material stock R 314 500 R 115 200 Work-in-progress stock ? 53 500 B. Extract from the records on 29 February 2020: (See Information C for adjustments.) Raw materials purchased on credit R 738 900 Damaged raw material returned to suppliers 15 300 Factory overhead cost 322 100 Production wages (direct labour) 598 750 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Accounting/P2 5 DBE/September 2021 NSC C. Additional information:  One worker, James, was omitted from the Production Wages Register. Details from his job card for the last week in February 2020 are as follows: Hours worked Normal rate Overtime hours Overtime rate 30 R120 5 R180 Total employer's contribution amounts to 10% of gross wage.  Insurance of R15 880 was incorrectly omitted from factory overhead costs. This includes a premium of R2 220 paid for the period 1 January 2020 to 30 June 2020. This expense must be allocated between the factory and the sales department in the ratio 3 : 1.  The bookkeeper included R39 600 (75%) of the wages to cleaners in the factory overhead cost. Only 2/3 of this expense should be allocated to the factory. D. The business produced 22 500 towels during the financial year, at R60 per unit. Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Accounting/P2 6 DBE/September 2021 NSC 1.3 FRAGRANCE MANUFACTURERS This business manufactures perfumes and shampoo. The owner, Marie Klasen, has compared the profit she earned over the past two years (2019 and 2020). REQUIRED: 1.3.1 Identify ONE variable cost of each product that was not well controlled. Note that the inflation rate is 6%. Quote figures. In each case, give a solution for the problem identified. (6) 1.3.2 Provide a calculation to prove that the break-even point of 26 250 units for perfumes in 2020 is correct. (4) 1.3.3 Comment on the break-even point and level of production of perfumes. State TWO points with figures. (4) INFORMATION: A. UNIT COSTS AND SELLING PRICES PERFUMES SHAMPOO (Unit costs) (Unit costs) 2020 2019 2020 2019 R R R R FIXED COSTS 36,75 30,00 18,48 22,00 Factory overhead cost Administration cost VARIABLE COSTS 108,00 88,00 50,00 38,50 Direct material cost 50,00 48,00 25,00 15,00 Direct labour cost 40,00 30,00 18,00 17,00 Selling and distribution 18,00 10,00 7,00 6,50 cost SELLING PRICE 150,00 140,00 90,00 80,00 B. UNITS AND BREAK-EVEN POINT Total units produced 30 000 35 000 12 500 10 000 and sold Break-even point 26 250 20 200 5 775 5 300 (units) 45 Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Accounting/P2 8 DBE/September 2021 NSC QUESTION 2: DEBTORS' RECONCILIATION AND VAT (40 marks; 30 minutes) 2.1 DEBTORS' RECONCILIATION The information relates to Mamela Traders for September 2020. REQUIRED: 2.1.1 Calculate the correct Debtors' Control balance on 30 September 2020. Show figures and indicate '+', '–' or 'no change' at each adjustment. (8) 2.1.2 Calculate the correct total of the Debtors' List on 30 September 2020. (11) 2.1.3 Despite sending monthly statements timeously, the accountant noticed that this was not effective in improving collections.  Refer to Information C. Calculate the % of debtors who do not comply with the credit terms. (4)  Refer to Information A. Identify ONE other problem with regard to the control over debtors (2)  Provide TWO suggestions to address the problems identified. (2) INFORMATION: A. Balances on 30 September 2020 before taking into account the errors and omissions: (i) Debtors' control balance in the General Ledger, R100 310. (ii) List of debtors' balances: Credit Limit Balance D Dlamini R20 000 R27 000 G Swardt 30 000 22 470 N Nomandla 15 000 17 600 L Vos 40 000 34 440 X Meyer 10 000 (2 000) B. Errors and omissions: (i) The total of the Debtors' Journal was overcast by R3 600. (ii) No entry was made for a sales invoice issued to Vos for R2 760. (iii) Interest of R230 must be charged on the overdue account of Swardt. (iv) Goods returned by Nomandla, R1 400, were posted to the wrong side of his account in the Debtors' Ledger. The entry in the General Ledger was correct. (v) The amount of R6 300 received from Dlamini was incorrectly recorded as R3 600 in the Cash Receipts Journal and posted as such to the Ledger Accounts. (vi) The balance of Meyer must be transferred to his account in the Creditors' Ledger. Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Accounting/P2 9 DBE/September 2021 NSC C. On 30 September 2020, the Debtors' Age Analysis revealed the following: Current Balance 30 days 60 days 90 days Month R99 000 R15 420 R22 200 R44 500 R16 880 Credit terms: Debtors are granted 30 days to settle their accounts. 2.2 VAT FOREVER TRADERS Tom Smith is the sole owner. The information relates to the VAT period ended 31 August 2020. The standard VAT rate of 15% is applicable to all goods purchased and sold. REQUIRED: 2.2.1 Calculate the VAT amount that is payable to SARS on 31 August 2020. (9) 2.2.2 During September, the accountant came across a document for furniture bought by Tom Smith for his personal home, for R46 000 cash. Tom said that R6 000 VAT included in this amount must be regarded as input VAT. Further investigation revealed that similar documents were regularly entered in the books over the past year. Advise the accountant on dealing with this matter. State TWO points. (4) INFORMATION: A. Amount due to SARS on 1 August 2020 is R31 470. B. The following transactions appeared in the records for August 2020: EXCLUDING VAT INCLUDING DETAILS VAT AMOUNT VAT Total sales R535 000 R80 250 R615 250 Purchases of stock 385 000 57 750 442 750 Discount received from 11 500 ? suppliers Goods returned by debtors 22 500 ? 25 875 Stock taken by owner at cost 9 600 ? Debtors' accounts written off ? 36 800 40 Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Accounting/P2 10 DBE/September 2021 NSC QUESTION 3: INVENTORY VALUATION (30 marks; 25 minutes) On-Time Watches (Pty) Ltd has two shareholders, Lizzy and Patsy Ndou. The business sells watches. The periodic inventory system and the first-in-first-out (FIFO) method is used to value the watches. The financial year-end was 30 June 2020. The business sold only one type of watch, the XS Sports, in the past. Even though these watches were selling well, Lizzy felt that the business was not earning enough profit. She convinced Patsy that importing exclusive watches (the Euroclox) would be a good solution for this problem. REQUIRED: 3.1 Calculate the following for the imported Euroclox watches on 30 June 2020, using the FIFO method:  The value of the closing stock (5)  Stock-holding period (in days) using the closing stock amount (3)  % mark-up on cost (3) 3.2 Patsy was still not convinced about the decision to import the Euroclox watches, but it appears that Lizzy's decision was beneficial to the business. In each case below, quote figures or indicators. 3.2.1 Compare the mark-up % achieved on each model and comment on how this has affected the sales and profitability of the two models. (4) 3.2.2 Compare the stock-holding period for each model and the demand for each model and comment on how these affected the management of the stock items of the two models. (4) 3.3 Lizzy is interested in finding out if the weighted-average method of valuing the Euroclox watches will result in a significantly different stock value.  Calculate the value of the 270 watches using the weighted-average method. (5)  Explain the effect this would have on the gross profit. Quote figures. (2)  Explain why it would not be appropriate for her to use the weighted- average method for the new watches in the future. State TWO points. (4) Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Accounting/P2 11 DBE/September 2021 NSC INFORMATION: A. Stock records for imported Euroclox watches: NUMBER OF UNIT PRICE TOTAL DATE UNITS AMOUNT Purchases: 1 July 2019 200 R 1 615,50 R 323 100 30 September 2019 500 1 700,00 850 000 20 December 2019 1 200 1 900,00 2 280 000 25 March 2020 400 2 000,00 800 000 15 May 2020 250 2 400,00 600 000 Total purchases 2 550 R4 853 100 Returns: 15 May 2020 90 ? Available for sale 2 460 ? Stock on 30 June 2020 270 ? Sales 2 190 R2 700 R5 913 000 Cost of sales R4 033 100 B. Information obtained from the financial records on 30 June 2020: EUROCLOX XS SPORTS MODEL MODEL Mark-up % ? 75% Stock-holding period ? 120 days Selling price per watch R2 700 R560 Average cost price per watch R1 842 R320 Average gross profit per watch R858 R240 Gross profit R1 879 900 R840 000 Sales of watches R5 913 000 R1 960 000 Units sold 2 190 watches 3 500 watches Closing units on hand 270 watches 1 381 watches 30 Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com Accounting/P2 12 DBE/September 2021 NSC QUESTION 4: BUDGETS (35 marks; 30 minutes) You are provided with information of Fantasy Laptops, a business owned by Ray Rennie, for the budget period December 2020 to February 2021. The business sells various types of laptop computers and does not sell on credit. They also repair these items for customers at a fee. REQUIRED: 4.1 Refer to Information A and B. Complete the Creditors' Payment Schedule for February 2021. (7) 4.2 Refer to Information C and D. Calculate:  % increase expected in security costs from 1 February 2021  % commission paid to salespersons during February 2021  Water and electricity budgeted for December 2020  The loan repayment to be made on 31 December 2020 (12) 4.3 Refer to Information E. The internal auditor has noticed that packing material was R800 overspent and consumable stores were R1 500 overspent. Comment on the control of packing materials and consumable stores. Quote figures or calculations. (6) 4.4 Refer to Information D. During the Coronavirus lock-down in April and May 2020, the business lost money because there were no sales and fee income. However, Ray had to continue making payments to keep the business afloat (as a going concern).  Give ONE reason why he did not want to stop paying salaries and wages. (2)  Identify ONE other payment in the list in Information D that he would not have been able to stop and give a reason. (2)  Identify ONE payment in the list in Information D that he would have stopped and give a reason. (2) 4.5 Refer to Information F. Ray Rennie, the owner, requires help in making a financial decision. He is undecided as to whether he should lease or buy a delivery vehicle. His two options are reflected as Option X and Option Y. Apart from generating more sales or having the use of the vehicle, state TWO advantages of EACH option. (4) Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com Accounting/P2 13 DBE/September 2021 NSC INFORMATION: A. Mark-up % and sales: A mark-up of 75% on cost is used to set the sales prices of the laptops. ACTUAL SALES PROJECTED SALES October November December January February 2020 2020 2020 2021 2021 R490 000 R490 000 R770 000 R560 000 R525 000 B. Purchases and payment to suppliers (creditors):  All stock is bought on credit.  Stock sold is replaced in the month of sales.  Some creditors offer a discount for payment in the month of purchase.  50% is paid in the month of purchase to earn a 10% discount.  30% is settled in the month after the purchase transaction month.  20% is settled in the second month after the purchase transaction month. C. Information on specific items from the Cash Budget:  Security: The guards are outsourced from Keepsafe Guarding.  Commission: Salespersons are paid commission in the same month on sales only. They do not receive a fixed salary.  Water and electricity: The expected increase from 1 January 2021 is 24%.  Loan and interest: The loan from Delta Bank bears interest at 12,5% per year. Interest is not capitalised and a fixed loan repayment is made on 31 December each year.  Consumable stores: These are used to repair laptops for customers. D. Extract from the Cash Budget: December January February 2020 2021 2021 R R R Fee income: repair services 100 000 150 000 150 000 Interest on loan (12,5% p.a.) 9 375 8 125 Repayment of loan ? Commission to salespersons 123 200 89 600 84 000 Consumable stores for repairs 42 000 63 000 63 000 Security 18 000 18 000 28 500 Water and electricity ? 18 600 18 600 Salaries and wages Packing materials Insurance Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com Accounting/P2 14 DBE/September 2021 NSC E. The internal auditor identified the following figures for October 2020: Budgeted Actual Variance R R % Sales 490 000 400 000 -18,4% Fee income 85 000 126 000 +48,2% Packing materials 22 000 22 800 +3,6% Consumable stores 24 500 26 000 +6,1% F. Options for securing a delivery vehicle: Ray feels that he should buy a delivery vehicle for R520 000 or lease (hire) the vehicle on a monthly basis to enable his business to generate more sales after the Coronavirus lockdown. He has only R100 000 in his investments that he can use. These investments are currently earning interest at 6,5% p.a. He has two options to consider: Option X (buy the vehicle): Purchase the vehicle by using the money in his investments and take out a new 5-year loan for R420 000 at a high interest rate. He will have to repay the loan over five years. Interest over the five years will be R176 000. Option Y (hire/lease the vehicle): Hire (lease) the vehicle from Sentinel Ltd for R15 000 per month over 60 months. 35 TOTAL: 150 Copyright reserved ### Page 14 Downloaded from hlayiso.com Accounting/P2 DBE/September 2021 NSC GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders' equity (Trade & other receivables + Cash & cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales . Cost of sales 1 Average trading stock Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders' equity 1 (*See note below) Net income before tax + Interest on loans x 100 Average shareholders' equity + Average non-current liabilities 1 Shareholders' equity x 100 Dividends for the year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Dividends for the year x 100 Earnings per share 1 Net income after tax 1 Total fixed costs . Selling price per unit – Variable costs per unit NOTE: * In this case, if there is a change in the number of issued shares during a financial year, the weighted-average number of shares is used in practice. Copyright reserved ### Page 15 Downloaded from hlayiso.com STICKER CENTRE NUMBER EXAMINATION NUMBER NATIONAL SENIOR CERTIFICATE ACCOUNTING P2 GRADE 12 SEPTEMBER 2021 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 TOTAL This answer book consists of 10 pages. Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com Accounting/P2 2 DBE/September 2021 NSC – Answer Book QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 3 1.2.1 Calculate the direct material cost. Workings Answer 4 1.2.2 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2020 Direct material cost Prime cost Total manufacturing cost Work-in-progress (1 March 2019) 53 500 Total cost of production of finished goods 18 1.2.3 Identify TWO concerns regarding James's job card. Also provide ONE suggestion to address the concerns identified. TWO CONCERNS: ONE SUGGESTION: 6 Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com Accounting/P2 3 DBE/September 2021 NSC – Answer Book 1.3 FRAGRANCE MANUFACTURERS 1.3.1 Identify ONE variable cost of each product that was not well controlled. Note that the inflation rate is 6%. Quote figures. In each case, give a solution for the problem identified. VARIABLE COST (with figures) SOLUTION PERFUMES SHAMPOOS 6 1.3.2 Provide a calculation to prove that the break-even point of 26 250 units for perfumes in 2020 is correct. Workings Answer 4 1.3.3 Comment on the break-even point and level of production of perfumes. State TWO points with figures. 4 TOTAL MARKS 45 Copyright reserved Please turn over ### Page 18 Downloaded from hlayiso.com Accounting/P2 4 DBE/September 2021 NSC – Answer Book QUESTION 2 2.1 DEBTORS' RECONCILATION 2.1.1 CORRECTIONS TO THE DEBTORS' CONTROL ACCOUNT 30 SEPTEMBER 2020 Balance before errors and omissions 100 310 (i) (ii) (iii) (iv) (v) (vi) Correct balance of Debtors' Control Account 8 2.1.2 DEBTORS' LIST ON 30 SEPTEMBER 2020 D Dlamini 27 000 G Swardt 22 470 N Nomandla 17 600 L Vos 34 440 X Meyer – 2 000 Correct total of Debtors' List 11 2.1.3 Refer to Information C. Calculate the % of debtors who do not comply with the credit terms. Workings Answer 4 Refer to Information A. Identify ONE other problem with regard to the control over debtors. 2 Provide TWO suggestions to address the problems identified. 2 Copyright reserved Please turn over ### Page 19 Downloaded from hlayiso.com Accounting/P2 5 DBE/September 2021 NSC – Answer Book 2.2 VAT 2.2.1 Calculate the VAT amount that is payable to SARS on 31 August 2020. Workings Answer 9 2.2.2 Advise the accountant on dealing with the matter of the documents submitted by Tom Smith. State TWO points. 4 TOTAL MARKS 40 Copyright reserved Please turn over ### Page 20 Downloaded from hlayiso.com Accounting/P2 6 DBE/September 2021 NSC – Answer Book QUESTION 3 3.1 Calculate the value of the closing stock using the FIFO method. Workings Answer 5 Calculate the stock-holding period (in days) using the closing stock amount. Workings Answer 3 Calculate the % mark-up on cost. Workings Answer 3 3.2.1 Compare the mark-up % achieved on each model and comment on how this has affected the sales and profitability of the two models. Quote figures or indicators. 4 3.2.2 Compare the stock-holding period for each model and the demand for each model and comment on how these affected the management of the stock items of the two models. Quote figures or indicators. 4 Copyright reserved Please turn over ### Page 21 Downloaded from hlayiso.com Accounting/P2 7 DBE/September 2021 NSC – Answer Book 3.3 Calculate the value of the 270 watches using the weighted-average method. Workings Answer 5 Explain the effect this would have on the gross profit. Quote figures. 2 Explain why it would not be appropriate for her to use the weighted-average method for the new watches in the future. State TWO points. 4 TOTAL MARKS 30 Copyright reserved Please turn over ### Page 22 Downloaded from hlayiso.com Accounting/P2 8 DBE/September 2021 NSC – Answer Book QUESTION 4 4.1 Complete the Creditors' Payment Schedule for February 2021. Credit December January February purchases 2020 2021 2021 R R R R December 198 000 132 000 January 144 000 February 7 4.2 Calculate the % increase expected in security costs from 1 February 2021. Workings Answer Calculate the % commission paid to salespersons during February 2021. Workings Answer Calculate the water and electricity budgeted for December 2020. Workings Answer Calculate the loan repayment to be made on 31 December 2020. Workings Answer 12 Copyright reserved Please turn over ### Page 23 Downloaded from hlayiso.com Accounting/P2 DBE/September 2021 NSC – Answer Book 4.3 Comment on the control of packing materials. Quote figures or calculations. Comment on the control of consumable stores. Quote figures or calculations. 6 4.4 Give ONE reason why he did not want to stop paying salaries and wages. 2 Identify ONE other payment in the list in Information D that he would not have been able to stop and give a reason. ONE other payment identified: Reason: 2 Identify ONE payment in the list in Information D that he would have stopped and give a reason. ONE payment identified: Reason: 2 Copyright reserved Please turn over ### Page 24 Downloaded from hlayiso.com Accounting/P2 10 DBE/September 2021 NSC – Answer Book 4.5 Apart from generating more sales or having the use of the vehicle, state TWO advantages of EACH option. TWO advantages of Option X (buy the vehicle): ADVANTAGE 1 ADVANTAGE 2 TWO advantages of Option Y (hire/lease the vehicle): ADVANTAGE 1 ADVANTAGE 2 4 TOTAL MARKS 35 TOTAL: 150 Copyright reserved ### Page 25 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING P2 SEPTEMBER 2021 MARKING GUIDELINES MARKS: 150 MARKING PRINCIPLES: 1. Unless otherwise stated in the marking guidelines, penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. 2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. 3. Full marks for correct answer. If answer incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Note: if figures are stipulated in memo for components of workings, these do not carry the method mark for final answer as well. 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or – sign or bracket is provided, assume that the figure is positive. 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 7. This memorandum is not for public distribution, as certain items might imply incorrect treatment. The adjustments made are due to nuances in certain questions. 8. Where penalties are applied, the marks for that section of the question cannot be a final negative. 9. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer. 10. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note: check operation must be +, -, x, ÷, or per memo. 11. In calculations, do not award marks for workings if numerator & denominator are swapped – this also applies to ratios. 12. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate with a . 13. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment could contain different aspects. 14. Codes: f = foreign item; p = placement/presentation. These marking guidelines consist of 10 pages. Copyright reserved Please turn over ### Page 26 Downloaded from hlayiso.com Accounting/P2 2 DBE/September 2021 NSC – Marking Guidelines QUESTION 1 1.1 1.1.1 Indirect materials  1.1.2 Indirect labour  1.1.3 Direct materials  Do not accept abbreviations 3 1.2.1 Calculate the direct material cost. Workings Answer (738 900 – 15 300) one mark 524 300  115 200 + 723 600  – 314 500  one part correct 4 1.2.2 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2020 Direct material cost See 1.2.1 524 300  (3 600 one mark + 900 one mark) Direct labour cost (598 750✓ + 4 500✓✓ + 450  10% of gross) 603 700 * Prime cost DMC+DLC 1 128 000  Factory overhead cost (15 880 – 1 480)two marks 14 400 two marks x ¾ one mark 328 500 * 322 100✓ + 10 800  – 4 400  + 35 200 one mark – 39 600 one mark Total manufacturing cost PC+FOHC 1 456 500  Work-in-progress (1 March 2019) 53 500 1 510 000 Work-in-progress (29 February 2020) inspect (160 000)  balancing figure Total cost of production of finished goods 1 350 000 ✓✓ (22 500 x R60) 18 *one part correct 1.2.3 Identify TWO concerns regarding James's job card. Also provide ONE suggestion to address the concerns identified. TWO CONCERNS: Any TWO points   part marks for incomplete / partial / unclear answers Figures are not required, can be used to support concerns • It is unethical to work overtime to earn more, and compromising normal time. • Worked 10 hours less (only 75% of normal time), but worked 5 hours’ overtime (cost the business and additional R300) • His pattern of poor attendance (productivity) was not detected earlier. • James is an unreliable worker, not committed to his job. • He could create a negative trend if noticed by other workers. ONE SUGGESTION: ONE point  part marks for incomplete / partial / unclear answers Disciplinary action (James and the Foreman) / regular supervision of workers / setting and controlling targets / training of management staff (foreman) / investigate for possible collusion / exercise strict control of overtime (authorisation) 6 Copyright reserved Please turn over ### Page 27 Downloaded from hlayiso.com Accounting/P2 3 DBE/September 2021 NSC – Marking Guidelines 1.3 FRAGRANCE MANUFACTURERS 1.3.1 Identify ONE variable cost of each product that was not well controlled. Note that the inflation rate is 6%. Quote figures. In each case, give a solution for the problem identified. VARIABLE COST (with figures) SOLUTION       PERFUMES Direct labour cost, Monitor overtime / Increased (from R30) to R40 (by R10 / 33,3%) Set targets for normal time Train workers to improve efficiency OR Selling and Distribution Monitor effectiveness of advertising to Increased (from R10) to R18 (by R8 / 80%) sales / delivery cost (use of vehicles) Tracking devices on vehicles SHAMPOOS Change suppliers / Direct material cost Look for cheaper suppliers / Increased (from R15) to R25 (by R10 / 66,7%) Monitor wastage / look for alternative transport and storage / buy as required or to orders received. 6 1.3.2 Provide a calculation to prove that the break-even point of 26 250 units for perfumes in 2020 is correct. (36,75 x 30 000) two marks 1 102 500 ✓✓ = 26 250 units 150  – 108 ✓ 42 two marks OR Sales total fixed costs variable costs = profit/loss (150 x 26 520) (36,75 x 30 000) (108 x 26 250) 3 937 500 – 1 102 500 – 2 835 000 = 0 4 1.3.3 Comment on the break-even point and level of production for perfumes. State TWO points with figures. TWO points (with figures)   compare BEP with level of production Point 1: current year Point 2: reference to previous year • In 2020, the business produced 3 750 units above the BEP (30 000 – 26 250) / made a profit on 3 750 units (two marks) • In 2019, the business made a profit on 14 800 (35 000 – 20 200) units, but on only 3 750 units in 2020 (four marks) • The BEP increased by 29,9% (from 20 200 to 26 250) but production decreased by 14,3% from 35 000 to 30 000. (four marks) Part marks for comparing only BEP or comparing only level of production 4 TOTAL MARKS 45 Copyright reserved Please turn over ### Page 28 Downloaded from hlayiso.com Accounting/P2 4 DBE/September 2021 NSC – Marking Guidelines QUESTION 2 2.1 DEBTORS' RECONCILATION 2.1.1 CORRECTIONS TO THE DEBTORS' CONTROL ACCOUNT: 30 SEPTEMBER 2020 Balance before errors and omissions 100 310 (i) – 3 600  (ii) + 2 760  (iii) + 230  Must indicate that there was (iv) no change e.g. (-) No change / 0  (v) no part-marks – 2 700  – 6 300 + 3 600 (vi) + 2 000  Correct balance of Debtors' Control Account 99 000  one part correct 8 Mark independently from 2.1.2 Accept brackets 2.1.2 DEBTORS' LIST ON 30 SEPTEMBER 2020 D Dlamini 27 000 – 2 700  (– 6 300 + 3 600) one marks 24 300  G Swardt 22 470 + 230  22 700  N Nomandla 17 600 – 2 800  or –1 400 – 1 400 14 800 * one mark one mark L Vos 34 440 + 2 760  37 200  X Meyer – 2 000 + 2 000  0 Correct total of Debtors' List 99 000 * 11 *one part correct 2.1.3 Refer to Information C. Calculate the % of debtors who do not comply with the credit terms. Workings Answer OR 61 380 two marks 37 620 x 100 = 38%. 62%  44 500 + 16 880 x 100 one part correct 99 000 99 000  100% – 38% 4 Refer to Information A. Identify ONE other problem with regard to the control over debtors. ONE problem  Debtors exceeding the credit limit (Dlamini; Nomandla) / Granting credit to debtors not complying to terms or credit limits (internal control problem) 2 Provide TWO suggestions to address the problems identified. Any TWO points   accept short statements Offer higher discounts for early payments / Add interest on overdue accounts / Monitor buying patterns of debtors / restrict further credit transactions / Send SMS reminders; timeous statements / Encourage debtors to pay by debit order or EFT / hand over to attorney or debt collector / Programme tills with customer details to detect limits 2 Copyright reserved Please turn over Text truncated here. 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