Accounting Grade 11 KZN September Test 2023 Paper & Memo

EKURHULENI NORTH DISTRICT GRADE 11 SUBJECT _—_—_—s JAG COUT : CODE AP TAGGN! | IICONTR@ELED TEST 2 1

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com CONTROLLED TEST INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely 1. Answer ALL the questions 2. Aspecial ANSWER BOOK is provided in which to answer ALL the questions 3. Show ALL workings to earn part-marks 4. You may use a non- programmable calculator 5. You may use a blue ink to answer to answer the questions. NO PENCIL!!! 6. Where applicable, show all calculation to ONE decimal point. 7. Write neatly and legibly 8. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it QUESTION 1:50 marks; 45 minutes Cost accounting Concepts, Ledger accounts and unit costs calculation QUESTION 2: 50 marks; 45 minutes Budgets Concepts and Cash budget

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com CONTROLLED TEST QUESTION 1: COST ACCOUNTING (marks 50; 45 minutes) 1.1. Give ONE term for each of the following description by choosing a cost category.next to the question numbers (1.1.1 to 1.1.4) in the ANSWER BOOK Selling-and distribution cost; direct labour cost; direct material cost; administration cost; factory overhead cost 1.1.1 Salary of the factory foreman 1.1.2 Bad debts 1.1.3. Stationery and telephone expenses 1.1.4 Wages paid to workers in the production process 1.2 | KARDASHIAN MANUFACTURERS Kardashian Manufacturers produces tennis balls which are supplied to local schools and retailers:in the area. The financial year ends on 28/29 February each year REQUIRED: 1.2.1 Calculate the following for the financial year e Direct material cost (7) e Direct labour.cost (5) 1.2.2 Record the following transactions in the General Ledger e Work-in-progress stock (10) e Finished goods stock (6) 1.2.3. The owner is concerned about control of workers in production. Provide TWO points that justify his concern. Quote relevantifigures. (6)

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com INFORMATION: A Stock-balance: CONTROLLED TEST 28 February 2022 1 March 2021 Finished goods stock R R Raw material 38 700 23 400 Work-in-progress 60 000 45 300 22 000 27 000 B Transactions for the year: e Raw material for R342 600 was purchased on credit. e Damaged raw material worth R15 700 was sent back to creditors. e Cash purchases of raw material amounted to R155 000. e Delivery cost on purchases of raw material, R19 400. e Total factory overheads for the year amounted to R273 340 c Details of workers in production: Number of workers 4 Normal hours worked (basic) 1 440 hours per week Normal time as per contract 40 hours per week, 45 weeks per year Normal time rate R35 per hour Total overtime hours worked 640 hours Overtime paid R33 600 The business contributes 1% to the UIF and 9% to the Pension fwadion behalf of all employees.

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com CONTROLLED TEST 1.3. Cost calculations You are provided with the information relating to Minaj Manufactures for the year ended 28 February 2023. The factory makes wooden catering tables. 1.3.1 Calculate,the direct material cost per unit. (3) 1.3.2 Calculate the direct labour cost per unit (3) 1.3.3 Calculate the Prime cost per unit (3) 1.34 Calculate the break-even point for the year ended 28 February 2023 and Comment on your answer. (4) INFORMATION FOR THE YEAR ENDING 28 FEBRUARY 2023 A. Total Cost Per unit Direct material cost 768 960 2 Direct labour cost 224 640 2 Total variable cost 1 058 400 R245 Total fixed cost 518 400 R120 Sales 1 728 000 R400 B Additional information e The business produced and sold 4320 tables during the year. e There was no work-in progress at the end of the financial year.

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com CONTROLLED TEST QUESTION 2: BUDGETING (50 marks;45 minutes) 2.1. State whether the following statements are True or False. Write only True or False to the question number (2.1.1-2.1.4) in the Answer book. 2..1.1 Provision for bad debts adjustment is an item that will appear in a Cash Budgst-but not on the Projected Income statement. (1) 2.1.2 Whatmakes the Cash Budget and Projected Income statement similar is that they both project figures for the future. (1) 2.1.3. Depreciation is an imputed expense therefore does not appear in the Cash Budget. (1) 2.1.4 The main purpose of the Cash budget is to project future income and expense. (1) 2.2. THE ROCK TRADERS Information from the records is for the budget period ended 31 December 2022 REQUIRED 2.2.1 Calculate the percentage of goods sold on credit during December 2022 (4) 2.2.2 Complete the Debtors Collection Schedule for December 2022 (9) 2.2.3. Prepare the Cash Budget for December 2022 (23) 2.2.4 Refer to the Actual figures for October 2022 (Information K) Identify TWO item that was well controlled. In each case, provide a reason for your choice (4) Provide the owner with different internal control measures he can use to exercise better control over TWO items on the list that are not well controlled (6)

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com CONTROLLED TEST INFORMATION A. Total sales figures for the budget period ended 31 December 2022: Goods.are sold at a profit mark-up of 50% on cost. ACTUAL BUDGETED MONTH | CASH CREDIT | CASH CREDIT October 38 400 57 600 November 64 800 December Credit sales are collected according to the following trend: 40% in the month of sale (these debtors receive a 5% discount) 40% in the month following the month of sale 18% two months after the sales month 2% is written off as bad debts. Purchases of stock: Stock sold is replaced in the month of sale (a base stock is maintained) All purchases of trading stock are made on credit. Creditors are paid in the month following the month of purchase. The three shop assistants each earn R10 100 per month. During December 2022, two of the three shop assistants will also receive their annual bonuses of 80% of their monthly salary. Total rent income for the previous financial for the previousifinancial year was R139 680. The rent is expected to increase by 5% on the/t-December 2022 The owner agreed to monthly drawings of R2 600. This compromises R1 800 cash and the balance in trading stock

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com CONTROLLED TEST G. Interest on fixed deposit amounts to R9 600 per year. This is received in three equal instalments on 30 September 2022, 31 December 2022 and 31 March 2023 H. Operating expenses amount to R18 000 per month I. Bankocharges averages R1 620 per month J. The bank balance on 30 November 2022 was R98 330 (favourable). K. Actual and budgeted figures for October 2022 BUDGETED ACTUAL Drawings R1 800 R1 500 Repairs and maintenance R5 000 R1 200 Advertising R3 600 R3 650 Rent income R11 640 R5 000 TOTAL 100

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com ERRATA EKURHULENI DISTRICT GRADE 11 CONTROLLED TEST Question 1 Remove Add 1.3.2 Calculate the direct labour cost per unit (3 marks) 1.3.3 Calculate the Prime cost 3 marks 1.34 Calculate the break- even point and comment on you answer/findings 4 marks Question 2 2.2.4 e Identity TWO items that was well controlled. In each case, provide a reason for your choice 4 marks e Provide the owner with different internal control measures he can use to exercise better control over TWO items that are not well controlled. 6 marks

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com ANSWER BOOK EKURHULENI NORTH DISTRICT GRADE 11 ACCOUNTING ANSWER BOOK CONTROLLED TEST 2 NAME OF LEARNER NAME OF SCHOOL DATE QUESTION] TOTAL MARKS |MODERATOR OBTAINED lQUESTION| 50 QUESTION 50 TOTAL 100 This Answer Book consists of 7 pages

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com ANSWER BOOK QUESTION 1 1.1 1.1.1 1.1.2 113 114 4 1.2.1 Direct material cost Direct labour cost

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com ANSWER BOOK 1.2.2 GENERAL LEDGER OF KARDASHIAN MANUFACTURERS WORK -IN- PROGRESS STOCK FINISHED GOODS STOCK 10 1.2.3 The owner is concern about the control of workers in production. Provide TWO points that justify his concern. Quote relevant figures Point 1: Figures Point 2: Figures

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com ANSWER BOOK 1.3 1.3.1 Calculate the direct material cost per unit 1.3.2 Calculate the direct labour cost per unit 1.3.3 Calculate the Prime cost per unit 1.3.4 Calculate the break-even point for the year ended ended 28 February 2023 and Comment.

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com QUESTION 2: BUDGETING 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 ANSWER BOOK Calculate the percentage of goods sold on credit during December 2022 2.3 Complete the Debtors Collection Schedule for December 2022 MONTH CREDIT SALES NOVEMBER DECEMBER October 57 600 23 040 November 64 800 December ? CASH FROM DEBTORS _——— #2

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com ANSWER BOOK 2.3 CASH BUDGET FOR DECEMBER 2022 RECIEPTS DECEMBER Cash Sales TOTAL RECEIPTS PAYMENTS Advertising 3 600 Repairs and maintenance 5 000 TOTAL PAYMENTS SURPLUS/(SHORTFALL) Bank (opening balance) Bank (closing balance)

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com 2.2.4 ITEM REASON Well controlled controlled 2.2.4 Provide the owner with different internal control measures he can use to exercise better control over TWO items that are not well Not well controlled Internal control measures ANSWER BOOK

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com MARKING GUIDELINE EKURHULENI NORTH DISTRICT GRADE 11 ACCOUNTING MARKING GUIDELINE CONTROLLED TEST 2 MARKING PRINCIPLES: 1. DON 10 11. 12. 13. 14. Unless otherwise stated in the marking guideline, 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. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. Unless otherwise stated, give full marks for correct answer. If answer is incorrect, mark workings. If a pre-adjustment figure is shown as a final figure, allocate the part-mark as working for that figure (not the method mark for the answer). NOTE: If figures are stipulated in marking guideline for components of workings, these do not carry the method mark for final answer as well. 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. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. Where penalties are applied, the marks for that section of the question cannot be a final negative. Where penalties are applied, the marks for that section of the question cannot be a final negative. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer before awarding the mark. ‘Operation’ means ‘Check operation’. 'One part correct’ means ‘Operation and one part correct. NOTE: check operation must be +, -, x, +, aS per candidate's calculation (if valid) or per memorandum. In calculations, do not award marks for workings if numerator and denominator are swapped — this also applies to ratios. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate by with a EX] Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment could contain different aspects. Codes: f = foreign item; p = placement/presentation.

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com MARKING GUIDELINE QUESTION 1 1.1 1.1.1 Factory overhead cost v 112 Selling and distribution” 1.1.3 Administration cost “ 1.1.4 Direct labour cost 1.21 Direct material cost 23400 +342 600V-15 700V +155 000“ +19 400” -38 700” =486 000M (7) Direct labour cost 4x 1 440x35 201 600V M1 Contribution (201 600x10%) 20 160M Overtime 33 600V TOTAL 255 360M (5) 1.2.2 GENERAL LEDGER OF KARDASHIAN MANUFACTURERS WORK -IN- PROGRESS STOCK 2021 |1 Balance b/d | 45 300v 2022 | 28 | Finished 1 000 000v march feb goods stock 2022 | 28 | Direct material 486 000Y Balance 6 000v Feb cost ¥ Direct labour 255 360 ¥ costly” Factory overhead 273 340” cost v 1 060 000 1 060 000 2022 Balance 60 000 March

Bownloaded from Stanmorephysics.com Downloaded from hlayiso.com FINISHED GOODS STOCK MARKING GUIDELINE Mach Balance b/d | 27 000” Cost of sales 1 005 000M 2021 v Feb 28 | Work in process Vv 1 000 000M Balance c/d | 22 000V 2022 1027 000 1027 000 March Balance: b/d | 22 000 2022 (6) 1.2.3 The owner is concern about the control of workers in production. Provide TWO points that justify his concern. Quote relevant figures TWO valid points Point 1: hours” Normal hours Worked is below the contracted Figures They should be working 1800 hours (40*45) but only worked 1 440v “ Point 2: Overtime hours are relatively high. ¥ Figures 640/1 440 (44,4%) 640/ 1 800 (35,5%)v ¥ 1.3 768 960” =R178M 4 320v 1.3.1 Calculate the direct material cost per unit (3) = R52M 1.3.2 Direct labour cost per unit 224 640” 4320v (3)

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com MARKING GUIDELINE 1.3.3 Prime cost per unit 52M+178M 230M 1.3.4. 518 400 v R400v-R245v = 3 344.5 or 3345M The business is making a profit. The break-even point is above the number of units produced and sold.

Downloaded from hlayiso.com Bowntoaded from Stanmorephysics.com MARKING GUIDELINE QUESTION 2: BUDGETING 2.1 2.1.1 | Falsey 1.2.2 | True 1.2.3 | True v 1.2.4 | Falsev 2.2 Calculate the percentage of goods sold on credit during December 2022 v vv 72000/120 000 x100 =60%M 2.3 Complete the Debtors Collection Schedule for December 2022 MONTH CREDIT SALES NOVEMBER DECEMBER October 57 600 23 040 10 368Vv November 64 800 24 624 25 920Vv December 72 000VV 27 360Vv CASH FROM DEBTORS 63 6489)

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com 2.3. CASH BUDGET FOR DECEMBER 2022 MARKING GUIDELINE RECIEPTS DECEMBER Cash Sales 48 000Y Cash from-debtors 64 648v Rent income 139 680”/12*105%” 12 222M Interest 3 200Vv TOTAL RECEIPTS 127 070M PAYMENTS Payments to creditors (43200+64800)v x100/150v 72 000M Salaries (10 100*180%2) +10 100 46 460M 36 360VM Drawings 1 800Vv Operating expenses 18 000” Bank charges 1 620v Advertising 3 600 Repairs and maintenance 5000 TOTAL PAYMENTS 148 480M SURPLUS/(SHORTFALL) (21 410) 4 Bank (opening balance) 98 330 v Bank (closing balance) 76 920M ITEMS vv REASON vv Well controlled Drawings: The owner issconsiderate of Drawings the cash flow situation Adverting The business was in/a/shortfall position Advertising; This budget}was well used. Only R50 over. The-business expects sales to increase during November and December, so they must advertise. 23

Downloaded from hlayiso.com Bownloaded from Stanmorephysics.com MARKING GUIDELINE 2.2.4 Provide the owner with different internal control measures he can use to exercise better control over TWO items that are not well controlled One point on each Repairs and-maintenance ¥ Have a regular inspection on assets needing maintenance Take out a-contract to ensure that is done regularly VW Rent income” Stipulate a fixed date for payment — or interest will apply Suggest a debit order to ensure payment is made Send a reminder before due date V ¥