Sunday. July 28.

20 I 3
PRACTICAL ACCOUNTING PROBLEI""iS It

First Pre-hoald Exalnittation 3:00 p.m to 5:00 P.nr

problem l.Ol October r.20l '. PPC \.'onipanv soltJ Article C)ne ct-rsting P270.000 for P400'000 Article
years
ibr two
B Two, a used article was ae(;i:Dle,.j as down pu,o.,ir.nt aitd tlte balattce on monthly' instalments
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
gross profit on sale of
price of Pl i0,000 after sr.rt:ii r^eronditloning' Tlre company,ormally expects 20%
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.)
B SepternLrer i0. 201-i ri'e as tbllorvs:

Cash pI :.000 Loatt fi"o'nr Mon Pl0'000

()ther assets liii.000 Erwil1. capitai (30%) 45.000
Loan to Raiph i.0c0 Ralph, capitut (50%) 30"000

l"iahrlities 5u.000 lvloa. capital (20%) 15.000

P9.000 on tlie first clistribution of cash. tlie cash realizecl ft-om the
initial sale of
lf Mon receiveri
assets was
A. 80.000 B. 65.000 c. 95.000 D. 15.000

December 3l' 2013'

Froblem 3 apcl 4.psalrn is currently preparirrg its conrtrinecl fitrancial statenlents. On
ihe houre ofllce accouni sl,{x,,';r balance of'{+s:,:OO. T'he branoh sent a check
for P12,000 on December
4.2C14 Ftrrtherrnore' Psalm shipped
3l ,:013.'lhe home ofl'ict di,J rtot receive tlie check urrtil ,lanuarlt
nrerc6andise costiug Pl0"00C to the branch ot.. l)ecenrber 28. l0ll at a transfer
price of P25'000''Ihe
b' the brailcl-' i.ttltil iallititr'l lt.20l4' Lastly' adr"ertisirig expenses trf P8'500
merchandise was rrot lc:eiii:ci
were allocated by. I?sallr i,r tire lrrarrch. Tlris rvas rectlrded a:: P5.800 by the brrarrclt'
A 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 D. P4"71.399

B 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 D. P411 .399

Problem 5.Cerry |r,;rrpatl)' adds ttr:ter:'iaI a.t rhe,;1a:-i of pr.oclrrctir--.r,, The follow'ing production infbrmatiott
C
is avaiiable lbr Jun,.::

(45% corlplete as !qqgryqMglU

110.000 units

units
_ __(80% 99ryp!9ii i;1o ,q!19tr19'il I

Current Period C'osts:

_MateLia
Con t,e r!, it
'a

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
A
books shurred thc foilowing:

Cash 2.60ij
Accounts receiv'able i:"00i)
Merchatrd i se i ttvetrtcln Iti.t,0(l
Acccxrltts payahle 6.200
PaLrl. capital 26.40(i
 shall be
It was agreed that. tbr establishing Paul's irrvestrrent in the tlrrn. the tollovrilrg adjustnrents
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

Problern 7.-t he tbllcw ing co*tts were aciluntulated lrr Depaf'tent 2 r:t Rodel ComPanY durirrg April:

- j._ -t--c;i',er"*_ T- T"t^l

i- - cnttr*,ltt'e;red l,rat"riul-- l
IL-___ __-I i tirn,
"-"'"-r- Deot. ..--
I
-i
]
-
Ctrsts ] C,tsts ]__ _---l
It..r--Beirirtuirtur lrrr ttttlrr i l,, i 7.()5{ --- I ir i..150 I _,P_?l-._5t'q ]
I Current Pelir.-'d
e

Cost
r I
I ! 84.00( I rr2.@q
L ___ i__ .___l;91,01(
Productiorr tbr A.pril iu Departurent 2 (in urtiis):

WIP-April I 1.000 60920 cornplete

I rarrsli.rr':cl OLrt dLir';nll ;\pril 10.000
WIP-Aprrl .i0 5,000 409/o conrplete

B Matenals ale riot add','d irr Dr:;;artiletrt 2 until the r le:r etrrJ crf pi-acessiltg Departinellt 2

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

A. P I 0.000 1'] l'-iJ.ti00 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).

Jtxgc ,la\ ntri!

('aslt P l0.Lr00 P 10"00u
Itrr crttories .i0.000
Laud : 0(i.(rc0
Eqri ipnrcnt r00-000
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:
.lr--.rg,e Jaytnes
10 /-
Inieresl rlr bcginrring halauces {'jlu AU
Salaiies PI 5.00{) PI 6.00()
Renra i nder t0oto ,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
c Prirrcipal ttl Pl$.000 rvas paid { on the ,irrrrroqrrp
^,r rlre rlroi'igage. ittte:est c\pell:ie lllc:urred on trre
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 eaclr ueek in a;rticipation r:l partttei'sitip proiits.
* illiclrew P2l5
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
 Page J

D 8, The capital credit to Mr.rngo Lloyd upon his adnrission trust be:
A.90.000 B. 100.900 c' 88'000 D. 80"000

B 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. 167,300

Inlormation for nurr.rbers l0 and ll

plus freight
ABC Corporation has two hrranches tc wirich rnercirandise is trarrsferred at '-:ost pltrs 20%'
thar cost P5^500 to its ('ehlu brattch" and the
c6arges. drr Novernber 30.2013. ABC shipped nrerclran<!ise
p200 shipping charge was paid'o;, ABC. On Decenrber 15.2013. the Ilocos branch encountered an
branch at a freiglit cost of
inveutor),shor-tage. arrd the Cebu bi-anch slirppecl tlte tuercltatidise to the llocos
pl60 paid br the Cebu brnnch. Shipping charges iiorn tlre ltome office to the llocos branch rvould ltave

been Pl 75.

C 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
A
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
is irt tlre Fillishirrg
volunre transferrcir iir LLl the utrrnber'of r,.a!ions.,ltirir aclclecr . Any spoiiage that t)cctlrs
the 98 percellt
Depari;rrer,t. Spoil,y-e ; detectecl .irrst b,eliire the rogtiil is plar:ed iillo c0tltaitlers or at
crtmpletiilu poirrt. /ril :,poilage is i'ihtlcrrtial.

l'inishing Department

BWIP ( 100% liuit. 0% cotrtaitrer. 30% CC) 5.000 gailons

(lal lons tlansl'erred in 5.50t)
Callons of il"Lrit added i"200
EWIP ( 100% tiuit. 0%o ctlttaitter" 609/o CC) 1.700 gallons
Abnornral spoilage 1.000

BWIP Costs:
Trarrst-erred ln $ e.700
Fruit r0.50c
CC 15.000

(lurrenr (losts:
Transf'erreC lii 12"400
Fi"iiit s4.000
C.,'ontainers l r.000
C]C -- i)8.900
l'()tal Cosr:i s 2l 0.600

C 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

i\o i685. wliich is being carried out by Flexy Fleet

Problem l3. Tlie following irrfbrmation relates to Job
to rreet a cLtstolner's order:

Dept. A _ -Depf-B
Di rect rnaterials consuired P5.000 P3.000
Dir'ecr labor rate per hottr 4 5

4 4
Productr.iort ol'erhead pel ciireii labor liorrr
D irec t labo r lt ou rs etrr p i .,', c ii 400 200
Adrrrinistlatir e artd othet overlt.::id ctlst 209/uof lLtil prLlclrrctioll cost
Profil nrarktip l:r% oi sellirrg price

B What is the sellirrq prict: r the custotner of .iob 2(r85;

A. 17.i33 tl. l0.8ti0 (.' 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
A 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 P 50.000
Construct iori i lr progress t50.;.100
l c)s: c(,ntr?:t billingrs :)q.,lE-u
( ()sts of'rrrrcornpieled c,)lltraci iil
Excess of biliings 60.000

Incorne Statement

Gross prrtfit (h,,-filr.r_, ta:,) rer.:or,.rrized it, l0lt .i5,000

B Wlrat is lhc *:1 irii.rtr:(J !rr:;( lo ,J()tltJlli.,t( t'tt l)t:.:cnrber i l. l0 1i'l
A.l I 5.I:,ililil. ;-t:i.i),,rU ('. 170.000 t). 185.000
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 itial
B irr senr ices
The flrst ittstallnlent ',1'at t:oller:ted on due date. The collectibiliil "eqrrired at a tota I cost of P I "500.000.
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)
C
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:: B. 1.50 {' t'1 4
D. r.85
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.
C what is the net incorne r-clatecl with frnnchise I'ee to be repo:1ec
br l\lagnoiia lce (lreanr in 2013?
A. P3SU.0'JU t]. pj00.000 {,. p+:rJ.6gO D P540.000
Prr:bletrl lc). Racolod tltiinulhct,rres product:; A. IJ anii ('tj.orl a.jeirrt f)r.()cess. Adcliiit,rrel iru.rrrrratir'rrr is as
lbllous:
A t)
LI C T,:tai
Llnits solil 2"t)00 1.0c0 '0J 1.50 J
IJnits on harid 1.0c0 l.ilO(l 5 0{,' 1.50u
SV at Splir ol'l' 'l l.-s.u00 i(i{).(i0()
.loiut (losr )
{:..000 ,I
'l br).9111,t
C'ost afier Spirt otT 7 000 5.000 ','
3.0r10
SV at final poir:t 70.000 i0"000 20.000
 sales ''alLre tlleth'od' $liat'ioint costs were
.

Assuuriirir the jOiirt cost are allocated using tlre ad.iLrstecl

C 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

tlte cost-io-cost percelltage of conipletion

C Problern 20.Drew Lopez Cotlstructiorr Cotnp:ny has used
ll'as Pl0.000-000
ruethrtcl tlf recogtlizilltl revellue. Total colttract price
l
2rll 2{Jl2 2013

Realized gross profit (loss) 'oo.ii'r',] P700"000 P(100'000)

Cost ittcr.rrred each vear .006.9r"i0 '! 4.100.000

of 2012'?
How muchis the total estinrated cost to complete b-' the end
A. 2.800.000 B. 1.000.000 . l'400'000 D. i"500,000

as lranclrisee of
protrleur 2l.ou Jirly I.2013. DrRCF cornpany signe<i an agreement to operate
u,.,.,ount. Pl00'0i)0 was paid upon signing
Irrernatio,al conrparry fbr a franchise fee orploc.co't] ortnlt
Bonus cil the agreenrent arrd the halauce is payabi: i,i
rlvt selrli-i.rllrual pavlnetlts tlf Pl00'000 eaclr bcgirttlitlg
brrrt the iirarket ratc t-'l' irtterest is ll%
The
Decenrber i l. 20ii. l'he notes are uon-irrrc'esr h,*arins
anri Ito fittLt|e serl'ices are required of the
agfeeu.lent provides that the down payrrel)t rs r)ot reiiin,-lntrie
placet tirr prcseui r'aiue tactor') ' orr Decetltber 'l l'
fia,chisor as of'Decer,ber 31. l0li. (LIse f iii:cirral
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
labror costs filr
(A artd B). Direct ttraterial arld
probler.n J2. Dapte Cr.rrnpa.nv produces tu't'l prrducts
pr.duct A rotal p35 (which iet'lects 4 direct labol iiciur'-s): cJirect rnaterial ancl labor costs fbr Prodrrct B
fl111g{itrlls are rleeded fbr each prodttct'
ttrtal p22 lwhich reflects 1.5 direct labor h,:r.lr's). Thre,: o',erheacl
productAirses2hoursof Functiou larplL)perlrrut.. lhotrrof Frrnctir.trt 2atPl perhour.attd6hoursof
1.2. and 3. respectively'
Furrcti.u 3 ar pllg per hour. product B uses i. 5. and i lic-,r.rrs olFuuctions
period'
Douell producds 800 r-r,',its r:f A and 8.000 rrr,its oi B e'eclr

activiir ircLtrs Ltsed. tlre total product cost

D litotal oler.lieah is assigned to A and B on ti.,,i:asis r:f'rvrrhead
pcr ttnit assignid to ProdLrct B u'ill be
li.l2 C' lrl'60 D' 1 I 1 45
A I t:.-it) B.

bLrilding at a price' of
Probient 2i.lrr 2011. Jack De Vitton' successtllll trid in a corltract fbr faciorv
";l:.ffis06." g,,ii.j.1-i. [,c. uses rhe a,d the fbllo''ing data
f.r,r.n,og"-ot'-conrpletiou tretltod.
C '-"i-'"
iulllniu iz.cti lilr i. 1'. 'icit,
"'-i'r-'.
ti,
il,_l,!,:Ul: lll_i!,1_1ll_i
Estiurated total ccst it c.)rrlpl!'liorr PCrIi0'0uU P 10'100'000
lncotrte lecilgtlizr j t; j,iit 'i-i
c'5t)'(ri l'i5O't)r)( l

. ,,.:.;irrrli{ ut,:Is ttraitlr=d trr illeostil'9 tile erte:tt

r-il'progress
\\,hat is the colltract uo-il iltcurred ir 20 1-l

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|-,
sigrlitrg oithe-
fbr an initial francliise f'ee ot'p1.000.000. i)l'tliir aniiiurrt. Pl.ltiu.000 vras reccived upon
in tht'ee atrltual paymellts, of
coptract. apd the balance pa.r able b1 a nor,-rr-rlilri:,1 l-ieeiitlg llote' ciite 'I'he
p500.000. beginning Deceniber il.2cii. Thr. collecti'oilitl'of the note is not reascrrably assured'
trarket rate oi'lnterest is i89i' (L'se tu'o clecilll places for prese'lt valtre i'actor')

A 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
D
,\. P498.000 B' P0 C l'li-1^150 D. P263.640

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
u'hic!r cottsiders firrther prtlcessittg costs
assigned to prcldr"rcts D and F by.the nt:i rc-aliz.rblr \,.1iLrc nrethod.
in s1ibsequeirt operations. Cost is allocated to by-product X usirrg the rerersal cost rTleillod'

.Aclditionul dutu:
Fn,
-1"0'J0 urnits 8.000 Lrnits 10.000 rinits
Quantit,v produced
Sales price per uitit Pl(r P]U P25
I)i P7
Furthe:" prclcessiug cost per uttit PJ

Marketing and adrnin istratil'e expellses ii,.

Oneratirro rTrotlt ner tttrif l)',,
 Page 6

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

PI17.600 ct. Pl 19.512 D. P 121.200
A. B.P122.400

per hour. but should have taken

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

A. Work in process 460

I.ahor price valiatlce 100
Labor effi ciettcY variance 60
Payroli PaYable 500
B. Wages expellse 550
50
i.atror etfi cietrcY v'at'iattce
Pa1'roll PaYable 500
( . W'ork in Plocess 500
PaYroll Pa1'a[rle 500
D Work in Process 5,{0
OU
Labor eft-icietlcl' variatrce
l-abor Price r''ariance 100
Payroll PaY'able 500

l8.The fbllowing selected accolrnts appeared in the trial balattce of Bab1,' V. Sales Cornpattl' as
B Pr',;blem
of Deceruber 31. 2013:
sales P 15.000 Repossessions P 3.000
Instalment receivable-2012
415"0c0
Ittstalmerttreceivable-2013 sales 200'000 lnstalnrent sales
j i 85.000
Inventor'). Decetrlher 1.2012 70.000 Regular sales
555-000 Deferred gross Protrt-201 2 50.;60
Purchases I
Additional in[ormation:
r20.000
Irrstalniettt receivable- ?0 il sales. Decetlber 3 i' 20l2
P
95.000
lnventorl,, clf irerl aucl repossessed mercltartdise as of Deceprber 3 l. 201 -l
i0oZ orr sales
Cross protit percetltage ott regttlar sales dLrring tlte 1'ear-

Repossessiolrs \ ere nrade dirring the Yea| l' oras a l0Il sale attd thc
corresponding Lrnctlllected
What is tire trr'iai i'er,lizc.'l \):i-! ir!r)fli'l
accourtl at lhe tittte ot'rept'sscssitrii as P7.l()t). e.i

A. l-14.5l0 B. 245.010 c.245.b10 D'246.010

B 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
account balances are
counted. tlreir conversiort costs (CC) compollellts are estimated, and inventory
ad.f usted. Raw nraterial cost is backflushed fl'onr MIP to Finished
Coods. The tollowirig intirrr-rtation is 1br
J uue:

Beginning balance MIP account inclLrding P3,000 CC P29.2s0

Beginning balance of finished goods account. inclLrding P I 0.000 of CC 30.000
562"500
Raw nraterials received ort credit
Ending MIP inr,entory per phl,sical count. inclUding P.1.500 olccl 32.000
Endin! fl,isirecl g..ocis i'i r.i-.ror\ per piil sicrl co,,t. i.cluc1i,gPll.750 ot'('(' 26"150
What is the t'lil tlaterial e ost tli- Lttlits corttpleted itl Jtt:li:'')
A. 561.000 B. 56 i.250 l- -,t;r-1,150 D. 563.500

probleut j0.Jualita Corlpap;- uses iustallrrient rref ltod olaccoutltitlg arld has the following data at lear
end.
B Clirss rlargin ott cost 66 )13%
Pr q2.000
Ll urealized gross protit
Cash collections includirrg doun pa)'lrerlts 360.000

What was the amotttlt of .iale tltt it-:st;iilirietti .)asrs

c. .180.000 D
A. 646.000 i1.8.i0.000
ss 2.000