CPAR_P2 07.28.13

PRACTICAL ACCOUNTING PROBLEI""iS I t First Pre-hoald Exalnittation

Cash ()ther _assets Loan to Raiph l"iahrlities

lf

Mon receiveri P9.000 on assets was

A.

80.000

Loatt fi"o'nr

Mon

Pl0'000 Erwil1. capitai

(30%)

45.000 Ralph, capitut

(50%)

30"000 lvloa. capital

(20%)

15.000 Sunday. July 28. 20 I 3 3:00 p.m to 5:00 P.nr D. P4"71.399 D. P411 .399 problem

_l.Ol

_October

_r.20l

_'.

PPC \.'onipanv soltJ Article C)ne ct-rsting P270.000 for P400'000 Article Two, a used article was ae(;i:Dle,.j as down pu,o.,ir.nt aitd tlte balattce on monthly' instalments ibr two years thar irrclgde both principal ari.l interesi at lSilo per,vear, starting October 3

l'

2013. P 120,000 was allowed

orrrlrearlicletraded-in, firecornparryestimatesretonditionin[costofPS,000ontlrisarticleandasales price of Pl i0,000 after sr.rt:ii r^eronditloning' Tlre company,ormally expects 20% gross profit on sale

of

usedarticles. Howrnui,irlstlier-ealrzedgrossprofitiriZOl:f(RoLrndoffpresentvalrrefactorsto3

decirnal places)

A.

i7"00i

Il.

-18..16.1

a.

28.750

D.28.486

probleur _{?.T5e rcr,.tyrts}

_rlf

_{tlre parruersliip r.rf'E,i'uiit.}

iialph

arl'l Mcrir at the etld

ol

its fiscal )ear ol.)

SepternLrer

i0.

201-i ri'e as tbllorvs:

p _{I :.000}

liii.000

i.0c0

5u.000

tlie first

clistribution

of

cash. tlie cash realizecl ft-om the initial sale

of

D. 15.000

B. 65.000

c.

95.000

Froblem 3 apcl 4.psalrn is currently preparirrg its conrtrinecl fitrancial statenlents. On December

3l'

2013' ihe houre ofllce accouni sl,{x,,';r balance of'{+s:,:OO. T'he branoh sent a check for P12,000 on December

3l

,:013.'lhe

home

ofl'ict

di,J rtot receive tlie check urrtil ,lanuarlt

4.2C14

Ftrrtherrnore' Psalm shipped nrerc6andise costiug Pl0"00C to the branch ot.. l)ecenrber 28.

l0ll

at a transfer price

of

P25'000''Ihe merchandise was rrot

lc:eiii:ci

b'

the brailcl-' i.ttltil

iallititr'l

lt.20l4'

Lastly' adr"ertisirig expenses trf P8'500 were allocated by. I?sallr i,r tire lrrarrch. Tlris rvas rectlrded a:: P5.800 by the brrarrclt'

j.

Hor.. rl;uch is the ad.iusted bala:,tle

cl

the reciplt)t)al accotlnts'l'

A.

P480.00;.

B.

1492.0(10

c'

P500.000

4.

Hc.',

intt':I

rs the ulad-ilisled balatlce of tlie branclt accoutrt'?

A.

P-i1{0.000

_"i.

Pr'q2.C00

C' P5u0.U''r0 Problem 5.Cerry |r,;rrpatl)' adds ttr:ter:'iaI

is avaiiable lbr Jun,.::

a.t rhe,;1a:-i of pr.oclrrctir--.r,, The follow'ing production infbrmatiott

V/hat is

thl

eost,';,"r

ll

lttrits iratt:;1i:rreii lLtt ttsittg the l'ti:O rnethcd'l

A.

P2Q r 0-l

+

B.

P

191.289 c.

[']287.004D.P298.029

problem 6 par-rl _{arjr-i,iis Claire as a partner irr business.}

iust

beli:re

th*

t:afitlersliip's iormation. Paul's books shurred thc foilowing:

Cash Accounts receiv'able Merchatrd i se i ttvetrtcln Acccxrltts payahle PaLrl. capital 2.60ij i:"00i) Iti.t,0(l 6.200 26.40(i (45% corlplete as

_!qqgryqMglU

110.000 units

_

__(80% 99ryp!9ii

i;1o

,q!19tr19'il units I

Current Period C'osts: _MateLia

Con t,e r!,

It was agreed that. tbr establishing Paul's irrvestrrent in the tlrrn. the tollovrilrg adjustnrents shall reflectrd:

o

Ailo*arrce tbr bad debts of 2o'i, shourlci be set up'

o

Merchanclise inventory should be valued at P20.200'

o

lrr.epaid e\pense of P350 and accrued expelrse of"P400 shorrld be rect-r5tltized'

Hclvr nruch cash should Claire iuvest tr"r SCCuli'A f)tli:-lhir,1 iilt*t"ir,.f irl tl,'; pafiitership?

A l-i.155

U.

9.{37

_'1.

'".{i00

ii'

ll'105

be

lrr

_Depaf'tent 2 r:t Rodel ComPanY

j._

l,rat"riul--

-t--c;i',er"*_

]

Ctrsts ]

C,tsts

-i

-

---

I

ir i..150 Problern 7.-t he tbllcw ing co*tts were aciluntulated

i- -

-

cnttr*,ltt'e;red

I

_{L-___ __-I}

i

tirn,

_"-"'"-r- Deot. I

..--I

Beirirtuirtu lrrr e

ttttlrr

i

l,, i 7.()5{

t..r-- r r I

I Current Pelir.-'d

Cost I

! _84.00(

L

___

i__

.___l;91,01(

Productiorr tbr A.pril iu Departurent 2 (in urtiis):

durirrg April:

T- T"t^l

l

]__

_---l

I

_,P_?l-._5t'q ]

I

rr2.@q

WIP-April I

I

rarrsli.rr':cl OLrt dLir';nll

;\pril

WIP-Aprrl .i0

Matenals ale riot add','d irr Dr:;;artiletrt 2 until r

Hou much is the sosl irt'r*'orl; itt prrti:es:'-rtt,.i')

A.

P I

0.000

1'] l'-iJ.ti00

1.000

60920 cornplete

10.000

5,000

409/o conrplete

the

le:r

etrrJ crf pi-acessiltg Departinellt 2

c.

P4iJ.l l0 D. P50.160

ProblemsSandg.ThepafinershipofJoriteand.larrnesbegattbr-rsitresso!1 Janttarl'1.2013' Thefollowing

assetii were contributeri 'oy eaclr partner (the nttn casi'r asselr are stated at their fhir rilarket Values on this date).

('aslt

Itrr crttories Laud

Eqri ipnrcnt

Inieresl

rlr

bcginrring halauces Salaiies Renra i nder Jtxgc P l0.Lr00 .i0.000 r00-000 ,la\ ntri! P 10"00u : 0(i.(rc0

J'he larrcl ua.s srib.iect

io

a

P65.000 nlorlgtrge. r,rhich th€ pafillerslrip as:'itt-'red on the sante

date'

The equipnrerit

*ur

r,,i,.1..r to sn in:;tairrent note-'payahle'tlrat iracl art trrtpaid princiPa! anlount

of

P35'000 on

JanJa.l

L

l0l3.

l-hE p..lrtnersl:ip also assurned

this,lot.

lrul'rtl..

Accordirlg

to ilre

partnership agreement. each panner \vas

to

har.,e

a 50

percent cirpital int,rrest r,'tt January

1.2013"

with

total parlnership _capitai breing P300.000. Jorse arrd Jal,nies agreed to sirtre pa(rrei'sllip itrcotne and losses in the fbllou irrg rnanrrer:

Jaytnes

10

/-AU

P I 6.00()

,1i9/o

Durirtg

l0l

l.

tlrc ibllr-.w ing t.r ctrts or;curretl:

e

ln,,errtol'\ \\as aettrire,l at a cost t-rf P]0"0()0. A-t l)t:t:erltb'-'r

I

i.

20 13. the partnership r'llvcci F6'0[10 to its

suppliers

{

_^,r

rlre

,irrrrroqrrp

:urred

on

trre

c

Prirrcipal

ttl

Pl$.000 rvas paid

on the

rlroi'igage. ittte:est c\pell:ie lllc

nlortgage rlas P-i.CiO0. all <.r!'vrhicl: rras paid h;'Decertlber -l

t.l0ll.

I

Pririsipat o1- P7.500 rvas paid on tire installmeltt

note.

;!rterest t)\l)r'l)se incurred on the

installureut noie rras P2"500. elloflwhici'i ra'as paid 51'Decernber

il.

i0l-j.

r

Sale on accL.unt Aut()ilni:d

to

P115"000.

At

De+emtrer

ir.

20 1-. ctrstotlr..'s owed tlre part:rership PI0.000.

r

fire partl)ership inverttol'1 at Decentber

I

i.

l0li.

iras F]0.rJ00.

r

Seiliirg. ancl gerre

ral

etpeuses. exc!rriling ciepreciati,.rrt" atntrurlled

to

P2

1.000.

At l)ecernber

i

l.

2011" the pertrrerslrip

,,r"d

P3,000

r:f

accrtred er.peitses. Depreciation e:tpeitSe t^ias iD5.000

o

Eacli _Flartner

*

illiclrew P2l5 eaclr ueek in a;rticipation r:l partttei'sitip proiits.

r

Iire i]arlrte:'s ailocated ihe riet i;rcoure tt:r 2013 artd cio:ied Ihe accottltts'

Adclifionat irrtirrrriati,,rr',: (.\n Jan,.rarr

l.

101.1. tlre pant)crsit;I cie,:itl:rj

to

adtttit Mt'rttgo l-lo1'd

to

the' pannerslrip. On tlrar dare. N,4ougo [-io.rd ;nlesterl Pl00.qq0 of cash ir:tc, tlte panncrship for a20oh capital

i rrfe rl.st

.lr--.rg,e

{'jlu

P I 5.00{)

Page J

8, The capital credit to Mr.rngo Lloyd upon his adnrission trust be:

A.90.000

B.

100.900

c'

88'000

9.

'fhe capital baiar:ce of Jorge. after Morrgo Llo;,d's adnrission tnust be:

A.

l8l.34C

B.

i63,140

c.

175'040

D. 80"000

D. 167,300

Inlormation

for

nurr.rbers

l0

and

ll

ABC Corporation has

two

hrranches

tc

wirich rnercirandise is trarrsferred at _'-:ost pltrs 20%' plus freight c6arges. drr Novernber 30.2013. ABC shipped nrerclran<!ise thar cost P5^500 to its ('ehlu brattch" and the

p200 shipping charge was

paid'o;,

ABC.

On

Decenrber 15.2013. the Ilocos branch encountered an inveutor),shor-tage. arrd the Cebu bi-anch slirppecl tlte tuercltatidise to the llocos branch at a freiglit cost

of

pl60

paid

br

the Cebu brnnch. Shipping charges iiorn tlre ltome office to the llocos branch rvould ltave been Pl 75.

10. lf'tlre rnerclraudist.is tiirsold ai \ear circl. the Il.rct-rs branch

rrili

inverrtorr the ttterchalldise at lvltat a l11r)tl llt'l

A

P6'es0

B'

P6'gl0

c P6'775

D'P6'575

ll.

lf

tlre rnerchandire is uns'tld at _{),ear errd,} irow nruch wouid A.BC irlcir"rCe as itlVetrtorv in its repoft to stocklrolcer s'i

A.

Pi.67s

B'

P5.850

c'

P5'500

D' P5'47s

prgblern

_l2.Yuiln-v

Yc,":Lrr"t Cornpany,produces -y-oc,ut1 itt two depaftrnents-Mi|illg and Finishing ln

Mixirrg" all ingredierr,.e\c(-pr

iiuit

are aclCed at tlre start of production' In Finishing, frtrit is added and

theii the nrirture

;;

i.,i:i.-;cl into contairiers. A,Jding the fi'i:it to the basic yogurt

nixtltre

increases the volunre transferrcir iir LLl the utrrnber'of r,.a!ions.,ltirir aclclecr . Any spoiiage that t)cctlrs is irt tlre Fillishirrg Depari;rrer,t. Spoil,y-e

;

detectecl .irrst b,eliire the

rogtiil

is plar:ed iillo c0tltaitlers or at the 98 percellt

crtmpletiilu poirrt.

/ril

:,poilage is i'ihtlcrrtial.

l'inishing Department

BWIP ( 100%

liuit.

0% cotrtaitrer. 30% CC) (lal lons tlansl'erred in

Callons of il"Lrit added

EWIP ( 100% tiuit. 0%o ctlttaitter" 609/o CC) Abnornral spoilage BWIP Costs: Trarrst-erred ln Fruit CC

(lurrenr

(losts: Transf'erreC

lii

Fi"iiit C.,'ontainers C]C l'()tal Cosr:i

Problem l3. Tlie following irrfbrmation relates to Job

i\o

to rreet a cLtstolner's order:

Di rect rnaterials consuired

Dir'ecr labor rate per hottr

Productr.iort ol'erhead pel ciireii labor liorrr

D irec t labo r lt ou rs etrr p i .,', c ii

Adrrrinistlatir e artd othet overlt.::id ctlst Profil nrarktip

What is the sellirrq prict:

r

the custotner of .iob 2(r85;

A. 17.i33

tl.

l0.8ti0

How ruuch is tlte cosi of units tratlsi'erred rlr.tt t-tsitrg l"ieiC,litec-i evcrage'/

A.

148.826

B.l9r.

i35

C'' i 70.080 D. 165,210

i685. wliich is being carried out by Flexy Fleet

Dept.

A _

-Depf-B

5.000

gailons 5.50t) i"200

1.700

gallons 1.000

$

e.700 r0.50c 15.000 12"400 s4.000 l r.000 -- i)8.900 s 2l 0.600 P5.000 4 4 400

209/u of lLtil prLlclrrctioll cost

l:r% oi sellirrg price P3.000 5 4 200

(.'

r9.800 D. 16.2s0

Problem l4.Shiprnents receivecl tiom the home oft'ice are billeri

tt

l.}Catcabt,-ve cost. During the year. the branch received shipmenls billed at P360.000. and retunred clnrnageil goods rviilr rillecl priie of irZq.OOO. The branch has an endirtg invL'irt(ri'\ of i'71.000. at billed price. -l'.he hr"rLrrh repofied ioss of p10.000. How tnuclt is the balance _{of tlte allt-inance l(lr nrarkup acrlc,unt br.fbre r*r,r-a,',ii arl.iustnrents'l}

A.

P56.000

B.p8u.u0L

c.

pi83.271

i).

p44.000

Problenl

l5.ln

_{2013" Bobadilla Construclisrl}

_{f'1.np6,r,,tegan}

_{consaructir:n rvork under}

_a

_three-year

contract. _{The corrtract price is P600.000.} ;r..har!!l'. _{r,ses tlle pcrceirtitge-ol'-con.rpletion}

nlethod fbr financial aecoulltillg pLrrposes. _J'he irrcorne to he recoglrized ear:lr _5,ru, iu ir;iseil oir rhe ilropor-tion eil ct-lsts inctlrred

to

ttital

eslitnated costs

frir

cotnpleiing

tlre

uontract. Tlre

tlnancial statement prescntati()n. related to this colltraci at Decenrber _l l.

l0l

j.

tirllow:

Statement of

f

inancial Positinn Accr:unts recei i,ab les-constructir-rrr

Conrract bjllings Construct iori i lr progress

l c)s: c(,ntr?:t billingrs

( ()sts of'rrrrcornpieled _{c,)lltraci iil} Excess of biliings

Incorne Statement Gross prrtfit (h,,-filr.r_, _{ta:,) rer.:or,.rrized it,}

l0lt

t50.;.100 :)q.,lE-u

Problern 16.(Jn.ialtuarl 1.2013. lr.arl" !rrc. sirlned r.r ti,.r:elniirt authorizing Mr. rJe _{['asiro Io operate} as a

franclrisee _{tbt'arr ir:itia! fianehise f'ee}

_{ol'P5.0{i0.0r'r (r:-}

11-,i, enro!.mr. F2"000.t100 rvas received upolt

signing

of

tlre agreeitietrt and rhe tralance e.,,idericrul

ir :

it,9,c pr6rrrisscir\ tloie

lllrich

is due

in

three

atrttual ittstalltnettt-s o1' Ill.000.t)00 _{eaclr hegirin:nr,. i),-.c::r"nirri}

_l

_l.

_l0I

_i.

lr,1r'. de Castro started franchise operailcins ort Septetnbei' I . 2 0 I 3 after Karl _{rentlered irr} itial _{senr ices}

"eqrrired at a tota I cost of P I _"500.000.

The

flrst

ittstallnlent _',1'at t:oller:ted

on

due

date.

The

collectibiliil

oi

the ncte

is

rrot l.rrrrionirb:',/ assured.H.w _{rnur:h rre: iucuni,: is io lre i.i-crg;riz,:c.i on Dccember}

31.2013?

4..

p2.i00.tiu0

_B.

p2.580.000 c. p600.000

_D.

_p1.080.000 Problern

l7'

Jack Cornpattl' ttrattuf'actures _{picture fiarnes ancl rrses.iob} r--,rder _{r:osting srsteru. The}

lbllowing _{costs relate lo tl.le crlrrenl procluctir.rrr ruu:}

F.stinrateilorerheird/:xcltr.,iret:fspoilage)

_pl6CCrl0

Spoilage

(estinrateci)

l5.ir00

Sales value _of spoilecl

il"anres

_{I 1.50{i}

Labor

hours

l00.ti0r)

ll.-::i:'11,t,1tt.?ii

j:p"ilecl lj'arne is P7.00. f)uririg rhe pcrit.ld. I70 fianie:; ar.e spt,iJeti. Each spoile<t frarne qall _{ne sttld}

_lol

_ir''l

_1't

_l'he

spoilage

_i:

cr)r)sidered part

,',il:!i.],rb:

\

/hai

_i:

_{the pretlcrel'r,inec.l t--verhead r.ate}

per dii"cct lib, ,r..i ,r;;,r.,.)

;\.

l.l::

Wlrat is lhc *:1 irii.rtr:(J !rr:;( lo ,J()tltJlli.,t(

A.l

I 5.I:,ililil. ;-t:i.i),,rU

t'tt l)t:.:cnrber

i

l.

l0

1i'l

('.

170.000 {' t'1 4 P 50.000 60.000 .i5,000 t). 185.000 D. r.85 lce (lreanr in 2013?

D

P540.000 Adcliiit,rrel iru.rrrrratir'rrr is as T,:tai 1.50 J 1.50u i(i{).(i0() br).9111,t ',' B. 1.50 Prtlblem lS'c)rr Jantra?|

i.20

13. Magnolia lce f'r'earn r;ii.,,€cl _{irr irg,e:rrrrri} autlror';z;rrg T'risha to operate as franclrisee fbr art _{irritial irsrrcl ,r,,}

_f!,:,

pj0u.t);f

_,

-

..i;

*.-

,,,ro:r sir,.rri:,c.

cf

tlie

ag,reentent. Trisha c0t.ntttetreecl tlperaticitts _{ott AugLtst}

_l.

₂₀

_i.l.

_{at wirir:h ,l;:ir, all}

r.,f ,1,.

iirrtial

,eri ir:..-s l-ctlurir.ecl ol- ivlagnolia lce c'reant liael heelr _{perfbrmecl et a cLlst of}

_Pll0.c00.

_{The tiarr.,h;:ii}

a!-lreenierrt iul-titer pitlvii.les that Jesse llltlst pa)

ti

i{l'!i;r{}:lriii}';r>tilitlrtitrq

_{fiirr,ll:ising fee. Saies reporte-d fiom}

rrugLrst

I

to December3l" 20 l3 anrounts to Pil$i).0it0.

what is the net incorne r-clatecl with frnnchise I'ee to be repo:1ec

br

l\lagnoiia A.

P3SU.0'JU

_t].

pj00.000

_{,.

p+:rJ.6gO

Prr:bletrl lc). Racolod tltiinulhct,rres product:; _{A. IJ anii}

('tj.orl

_a.jeirrt

f)r.()cess. lbllous: Llnits solil IJnits on harid SV at Splir ol'l' .loiut (losr

C'ost afier Spirt otT

SV at final poir:t A 2"t)00 1.0c0 ) _{:..000 7 000 70.000 t) LI 1.0c0 l.ilO(l 'l ,I 5.000 i0"000 C

'0J

5 0{,' l.-s.u00 'l 3.0r10 20.000

.

Assuuriirir the jOiirt cost are allocated using tlre ad.iLrstecl sales ''alLre tlleth'od' $liat'ioint costs were allocated'to product B and rvhat is the sales vaiue at Split

otrof

A. respectivell:

n.le.ooo

u,i,t

os.ooo

c'

15'000 and 60'000

B. 14.286 and

63'000

D'

12'000 and 60'000

How muchis the total estinrated cost to complete b-' the end of 2012'?

A.

2.800.000

B.

1.000.000

.

l'400'000

protrleur

_2l.ou

Jirly

I.2013.

DrRCF cornpany signe<i

an

agreement

to

operate

as

lranclrisee

of

Irrernatio,al conrparry fbr a franchise fee

orploc.co't]

ortnlt

u,.,.,ount. Pl00'0i)0 was paid upon signing cil the agreenrent arrd the halauce is payabi:

i,i rlvt

selrli-i.rllrual pavlnetlts

tlf

Pl00'000 eaclr bcgirttlitlg Decenrber

i l. 20ii.

l'he

notes are uon-irrrc'esr h,*arins brrrt the iirarket ratc t-'l' irtterest

is

ll%

The

agfeeu.lent provides that the down payrrel)t rs r)ot reiiin,-lntrie anri Ito fittLt|e serl'ices are required

of

the fia,chisor as of'Decer,ber 31.

l0li.

(LIse

f

iii:cirral placet tirr prcseui r'aiue tactor')

' orr

Decetltber 'l

l'

20

l3'

lrrt":l'rretiotlal (''otrpail'r'shcrrlcl l'eCt)i(J ti ;rttcliise re:retttie ot' :

A.F660.0008F72].0001'.P800.r]00D.Pj00.s00

probler.n _{J2. Dapte Cr.rrnpa.nv} produces tu't'l prrducts (A artd B). Direct ttraterial arld labror costs

filr

pr.duct A rotal p35 _(which iet'lects 4 direct labol iiciur'-s): cJirect rnaterial ancl labor costs fbr Prodrrct B ttrtal p22 lwhich reflects 1.5 direct labor h,:r.lr's). Thre,: o',erheacl fl111g{itrlls are rleeded fbr each prodttct' productAirses2hoursof Functiou

larplL)perlrrut.. lhotrrof

Frrnctir.trt

2atPl

perhour.attd6hoursof

Furrcti.u 3 ar pllg per hour. product B uses

i.

5. and

i

lic-,r.rrs olFuuctions 1.2. and 3. respectively'

Douell producds 800 r-r,',its r:f A and 8.000 rrr,its oi B e'eclr period'

litotal

oler.lieah is assigned to A and B on ti.,,i:asis r:f'rvrrhead

activiir

ircLtrs Ltsed. tlre total product cost pcr ttnit assignid to ProdLrct B

u'ill

be

A

I

t:.-it)

B.

li.l2

C'

lrl'60

D'

1 I 1 45

Probient

_{";l:.ffis06."}

2i.lrr

2011. Jack De

Vitton' successtllll

trid

in

a corltract

fbr

faciorv bLrilding at a price'

of

g,,ii.j.1-i.

_[,c.

uses rhe _{f.r,r.n,og"-ot'-conrpletiou} tretltod.

a,d

the

fbllo''ing

data iulllniu iz.cti

_{'-"i-'" "'-i'r-'.}

lilr

ti,

i.

1'. 'icit,

il,_l,!,:Ul:

lll_i!,1_1ll_i Estiurated total ccst

it

c.)rrlpl!'liorr

PCr

Ii0'0uU

P 10'100'000

lncotrte lecilgtlizr

j t; j,iit

c'5t)'(ri

'i-i

l'i5O't)r)( l

\\,hat is the colltract uo-il iltcurred

ir

20 1-l . ,,.:.;irrrli{ ut,:Is ttraitlr=d trr illeostil'9 tile erte:tt r-il'progress

ti-r\r 3i.l pro.iect coni p ie: ior.: ?

-

A

l<irilli'i

,

Bil?Ujt.)yg- {--:vu;UC0

D'i'=10'000

Problerrr24and25.onDecertrber3l'20l].So},]AC'otnpattyg.,1|-,

fbr an initial francliise f'ee ot'p1.000.000.

i)l'tliir

aniiiurrt. Pl.ltiu.000 vras reccived upon sigrlitrg oithe-coptract. apd the balance pa.r able

b1

a

nor,-rr-rlilri:,1 l-ieeiitlg

llote'

ciite

in

tht'ee atrltual paymellts,

of

p500.000. beginning Deceniber

il.2cii.

Thr. collecti'oilitl'of the note is not reascrrably assured' 'I'he trarket rate oi'lnterest is

i89i'

(L'se tu'o

clecilll

places _for prese'lt valtre i'actor')

24

on

i)ecertiber

3l'

20

l3' soNA cotnpaiil li'otlld

rt'':'rt:ttize re\'errrle

tiotll

tiatlchise of:

r\. P

0

U.

P-is8.000 ('.

i)1"C00"')[)C

l)

P+9tt'000 25. How ntuclt is the rttreartled illterest oll De''.etllbi;r

i

I . :l{: i+ l

,\. P498.000 B' P0

C

l'li-1^150

D.

P263.640

Problern 20.Drew Lopez Cotlstructiorr Cotnp:ny

ruethrtcl tlf recogtlizilltl revellue. Total colttract

Realized gross profit (loss) Cost ittcr.rrred each vear

.Aclditionul dutu:

Quantit,v produced Sales price per uitit

Furthe:" prclcessiug cost per uttit Marketing and adrnin istratil'e expellses Oneratirro rTrotlt ner tttrif

has used

tlte

cost-io-cost percelltage

of

conipletion price ll'as Pl0.000-000 2rll

l

2{Jl2

2013

'oo.ii'r',] P700"000

P(100'000)

.006.9r"i0

'!

4.100.000 D. i"500,000 Fn,

problem _{26.The LI\,IN Compan),} nlailuf-astr-rres

_,ioint

products

D

and

F

as

well

as

by-product X.

Ci,,rt,fuiiu. colsl data for tl"re period aurorurts to tt:.l,1.0OO represelttitrg 20.000 conipleted units' Costs are

assigned to prcldr"rcts D and F by.the nt:i rc-aliz.rblr \,.1iLrc nrethod. u'hic!r cottsiders firrther prtlcessittg costs

in s1ibsequeirt operations. Cost is allocated to by-product X usirrg the rerersal cost rTleillod'

-1"0'J0 urnits Pl(r PJ ii,. l)',, 8.000 Lrnits P]U I)i 10.000 rinits P25 P7

Problenr 27.11apro.iect required 50 hours to contplete at a cost of Pl0 per hour. but should have taken only 45 ht'rurs at a cost of Pl2 per hour. Wlrat is tlie proper journalentry't9 record the costs?

What is t[e cost al|:cateil ttr prodrrct E']

A.

PI17.600

B.P122.400

A.

Work in process

I.ahor price valiatlce

Labor effi ciettcY variance Payroli _PaYable

B.

Wages expellse

i.atror etfi cietrcY v'at'iattce Pa1'roll PaYable

(

_.

W'ork in _Plocess PaYroll _Pa1'a[rle

D

Work in Process

Labor eft-icietlcl' variatrce l-abor _Price r''ariance

Payroll PaY'able

Pr',;blem l8.The fbllowing selected accolrnts appeared

of Deceruber 31. 2013:

Instalment receivable-2012

sales

P

15.000 Ittstalmerttreceivable-2013

sales

200'000 Inventor'). Decetrlher

j

1.2012

70.000

Purchases

_I

555-000 Additional in[ormation: Page 6 ct. Pl 19.512 D. P 121.200 60 500 50 500 500 5,{0 OU 100 500

in the trial balattce

of

Bab1,'

V.

Sales Cornpattl' as

460 100 550 500 Repossessions lnstalnrent sales Regular sales

Deferred gross Protrt-201 2

P

3.000 415"0c0 i 85.000 50.;60 P r20.000 95.000 i0oZ orr sales Irrstalniettt receivable- ?0

il

sales. Decetlber 3

i'

20l2

lnventorl,, clf irerl aucl repossessed mercltartdise as of Deceprber 3

l.

201 -l

Cross protit percetltage ott regttlar sales dLrring tlte

1'ear-Repossessiolrs

\

ere nrade dirring the accourtl at lhe tittte ot'rept'sscssitrii as

A.

l-14.5l0

B. 245.010

p16bie6 29. pedro Cornpanl has a c1,cie tiine of 3 days. uses a Materials and In Process (MIP) account'

a,d charges allconversion costs to Cost of Coods l;oicl.

et

the end of each niortth. all invelttories are counted. tlreir conversiort costs (CC) compollellts are estimated, and inventory account balances are

ad.f usted. Raw nraterial cost is backflushed fl'onr MIP to Finished Coods. The tollowirig intirrr-rtation is 1br J uue:

Yea| l'

oras a

l0Il

sale attd thc corresponding Lrnctlllected

P7.l()t). What is tire trr'iai i'er,lizc.'l e.i \):i-! _ir!r)fli'l

c.245.b10

D'246.010 P29.2s0 P I 0.000 of

CC

30.000 562"500 32.000

ot'('('

26"150 D. 563.500 66 )13% P r q2.000 360.000

c.

.180.000

A.

561.000 B. 56 i.250

l-

-,t;r-1,150

probleut j0.Jualita _Corlpap;- uses iustallrrient rref ltod olaccoutltitlg arld has the following data at _lear end.

Beginning balance MIP account inclLrding P3,000 CC

Beginning balance of finished goods account. inclLrding Raw nraterials received ort credit

Ending MIP inr,entory per phl,sical count. inclUding P.1.500

olccl

Endin! fl,isirecl g..ocis

i'i

r.i-.ror\ per piil sicrl

co,,t.

i.cluc1i,gPll.750 What is the

t'lil

tlaterial e ost tli- Lttlits corttpleted itl Jtt:li:'')

Clirss rlargin ott cost

Ll urealized gross protit

Cash collections includirrg doun pa)'lrerlts What was the amotttlt of .iale tltt it-:st;iilirietti

A.

646.000

s s 2.000

i1.8.i0.000 .)asrs