Grade 11 · CAPS

Grade 11 Cost Accounting

Accounting practice questions and a worked example

Grade 11 Accounting cost accounting questions are about a manufacturer. You calculate direct material and direct labour cost, build up or correct the factory overhead cost, prepare the Work-in-progress account and calculate the break-even point, then say whether the owner should be satisfied with production. They come from the Eastern Cape Department of Education’s Grade 11 November papers for 2023, 2024 and 2025, each with the answer from the marking guideline.

Worked example

QUESTION 2: COST ACCOUNTING 2.2 NELSON’S FACTORY Nelson John, the owner presented the following analysis of costs, sales and production of electric heaters. The financial year ended on 30 June 2023. The heaters are sold at a profit mark-up of 60% on cost. 2.2.2 Explain whether Nelson should be satisfied with the level of production achieved for this financial year. Quote figures.

Answer

The business produced 5 000 units, which is 400 more than the break-even point (4 600 units). Nelson should be satisfied as he is making a profit on 400 units.

Test your understanding

Try a similar Grade 11 Cost Accounting question and get a useful next step based on your answer.

No account needed to start.

Cost Accounting

Question 1 of 3

QUESTION 2: COST ACCOUNTING 2.1 WESTERN MANUFACTURERS The business manufactures school jackets. The financial year ended on 28 February 2023. 2.1.1 Calculate the following for the financial year: 2.1.1 (a) Direct material cost

Learn from each answer, right or wrong.

Try again before revealing the solution.

Common mistakes

Charging the whole expense to the factory. Rent of R196 000 is allocated by floor space, so the factory’s 400 of 1 000 square metres is 78 400.
Leaving the employer’s contributions out of direct labour. Normal time of 393 600, overtime of 33 600 and 10% contributions of 39 360 give 466 560.
Dividing by the selling price in the break-even point. Fixed costs are divided by selling price less variable cost per unit: 575 000 ÷ (535 – 410) = 4 600 units.