PRACTICAL ACCOUNTING PROBLEI""iS

First Pre-hoald Exalnittation

problem

Sunday. July 28. 20 I 3

3:00 p.m to 5:00 P.nr

It

l.Ol October r.20l '. PPC \.'onipanv soltJ Article C)ne ct-rsting P270.000 for P400'000 Article
years

ibr two
Two, a used article was ae(;i:Dle,.j as down pu,o.,ir.nt aitd tlte balattce on monthly' instalments
was allowed
P
120,000
2013.
l'
3
thar irrclgde both principal ari.l interesi at lSilo per,vear, starting October
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
SepternLrer i0. 201-i ri'e as tbllorvs:

liii.000
i.0c0

()ther assets
Loan to Raiph
l"iahrlities

lf Mon receiveri

Loatt fi"o'nr Mon

Erwil1. capitai (30%)

:.000

pI

Cash

ol its fiscal )ear ol.)

Pl0'000
45.000

Ralph, capitut (50%)

lvloa. capital (20%)

5u.000

30"000
15.000

initial sale of
P9.000 on tlie first clistribution of cash. tlie cash realizecl ft-om the

assets was

A. 80.000

c.

B. 65.000

D. 15.000

95.000

December 3l' 2013'

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

A. P480.00;.

4.

Hc.', intt':I

rs

B.

cl the reciplt)t)al

1492.0(10

accotlnts'l'

c'

D. P4"71.399

P500.000

the ulad-ilisled balatlce of tlie branclt accoutrt'?

A. P-i1{0.000

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

is avaiiable lbr Jun,.::

(45% corlplete

as

"i.
a.t

Pr'q2.C00
rhe,;1a:-i

of

C'

pr.oclrrctir--.r,,

!qqgryqMglU

D.

P5u0.U''r0

P411 .399

The follow'ing production infbrmatiott

110.000 units

units

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

Current Period C'osts:

_MateLia
Con t,e r!,

'a

it

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

books shurred thc foilowing:
Cash

th* t:afitlersliip's iormation.

2.60ij

Accounts receiv'able

i:"00i)

Merchatrd i se i ttvetrtcln
Acccxrltts payahle
PaLrl. capital

Iti.t,0(l
6.200
26.40(i

Paul's

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

be

reflectrd:

o
o
o

Ailo*arrce tbr bad debts of 2o'i,

shourlci be set up'

Merchanclise inventory should be valued at P20.200'

of P350 and accrued expelrse of"P400 shorrld be rect-r5tltized'

lrr.epaid e\pense

Hclvr nruch cash should Claire iuvest

U.

tr"r

9.{37

A l-i.155

SCCuli'A f)tli:-lhir,1 iilt*t"ir,.f irl

'".{i00
'1.

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

i- IL-___
It..r--Beirirtuirtur lrrr
I Current

Pelir.-'d

L ___

ttttlrr
r

__-I

Cost

i
i

cnttr*,ltt'e;red
tirn,
"-"'"-r- Deot. ..-I

l,, i 7.()5{

i__

lrr Depaf'tent

j._
]

-i

tl,'; pafiitership?

ii' ll'105

2 r:t Rodel ComPanY durirrg

l,rat"riul--

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

Ctrsts ]
--- I

C,tsts

ir i..150

]__

84.00(

April:

T"t^l

_---l

_,P_?l-._5t'q ]

rr2.@q

.___l;91,01(

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

WIP-April

1.000

I rarrsli.rr':cl

OLrt dLir';nll

;\pril

60920

cornplete

10.000

5,000

WIP-Aprrl .i0

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

r

le:r

409/o conrplete
etrrJ crf pi-acessiltg

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

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

Departinellt

D. P50.160

c. P4iJ.l l0

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

this
assetii were contributeri 'oy eaclr partner (the nttn casi'r asselr are stated at their fhir rilarket Values on
date).
,la\ ntri!
P 10"00u

Jtxgc
P l0.Lr00
.i0.000

('aslt
Itrr crttories
Laud

: 0(i.(rc0
r00-000

Eqri ipnrcnt

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

Inieresl rlr bcginrring halauces

Salaiies
Renra i nder

Durirtg

e
c
I
r
r
r

o
r

Jaytnes
10 /AU

{'jlu
PI

5.00{)
t0oto

PI

6.00()
,1i9/o

l0l l.

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

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
{ on
rlroi'igage. ittte:est c\pell:ie lllc:urred on trre
Prirrcipal ttl Pl$.000 rvas paid
the ,irrrrroqrrp
^,r rlre
nlortgage rlas P-i.CiO0. all <.r!'vrhicl: rras paid h;'Decertlber -l t.l0ll.
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.
Sale on accL.unt Aut()ilni:d to P115"000. At De+emtrer ir. 20 1-. ctrstotlr..'s owed tlre
part:rership PI0.000.
fire partl)ership inverttol'1 at Decentber I i. l0li. iras F]0.rJ00.
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

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

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

Eacli Flartner

* illiclrew P2l5

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

A.90.000

9.

B.

c'

100.900

D. 80"000

88'000

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

A.

l8l.34C

B.

i63,140

c.

D. 167,300

175'040

Inlormation for nurr.rbers l0 and ll

plus freight
ABC Corporation has two hrranches tc wirich rnercirandise is trarrsferred at '-:ost pltrs 20%'
('ehlu
and the
brattch"
its
to
P5^500
cost
thar
c6arges. drr Novernber 30.2013. ABC shipped nrerclran<!ise
an
encountered
branch
Ilocos
the
p200 shipping charge was paid'o;, ABC. On Decenrber 15.2013.
of
cost
freiglit
a
at
branch
inveutor),shor-tage. arrd the Cebu bi-anch slirppecl tlte tuercltatidise to the llocos
ltave
rvould
branch
pl60 paid br the Cebu brnnch. Shipping charges iiorn tlre ltome office to the llocos
been Pl 75.

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

a l11r)tl

llt'l

A P6'es0

ll.

B'

rrili

inverrtorr the ttterchalldise at lvltat

c P6'775

P6'gl0

D'P6'575

lf tlre rnerchandire is uns'tld at ),ear errd, irow nruch wouid A.BC

to stocklrolcer s'i

A. Pi.67s

B'

irlcir"rCe as itlVetrtorv in its repoft

c' P5'500

P5.850

D' P5'47s

prgblern l2.Yuiln-v Yc,":Lrr"t Cornpany,produces -y-oc,ut1 itt two depaftrnents-Mi|illg and Finishing ln
is added and
Mixirrg" all ingredierr,.e\c(-pr iiuit are aclCed at tlre start of production' In Finishing, frtrit
the
increases
yogurt
nixtltre
theii the nrirture ;; i.,i:i.-;cl into contairiers. A,Jding the fi'i:it to the basic
Fillishirrg
irt
tlre
is
volunre transferrcir iir LLl the utrrnber'of r,.a!ions.,ltirir aclclecr . Any spoiiage that t)cctlrs
percellt
the 98
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)
(lal lons tlansl'erred in

5.000

Callons of il"Lrit added

EWIP ( 100% tiuit. 0%o ctlttaitter"
Abnornral spoilage

i"200

gailons

5.50t)

1.700

609/o CC)

gallons

1.000

BWIP Costs:

Trarrst-erred ln

e.700

Fruit

r0.50c

CC

15.000

(lurrenr (losts:
Transf'erreC
Fi"iiit

lii

12"400

s4.000
l r.000

C.,'ontainers
C]C

--

i)8.900

s 2l 0.600

l'()tal Cosr:i

How ruuch is tlte cosi of units tratlsi'erred rlr.tt t-tsitrg l"ieiC,litec-i evcrage'/
C'' i 70.080
B.l9r.
A.

i35

148.826

Problem l3. Tlie following irrfbrmation relates to Job

to rreet a cLtstolner's order:

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

Dept.

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

the custotner of .iob 2(r85;

tl. l0.8ti0

400

200

of lLtil prLlclrrctioll cost

l:r% oi sellirrg price

209/u

Profil nrarktip

-Depf-B
P3.000

4
4

Dir'ecr labor rate per hottr

A. 17.i33

A _

P5.000

Di rect rnaterials consuired

What is the sellirrq prict:

D. 165,210

(.'

r9.800

D. 16.2s0

Fleet

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

c. pi83.271

B.p8u.u0L

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

P 50.000
t50.;.100
:)q.,lE-u

of biliings

60.000

Incorne Statement
Gross prrtfit

(h,,-filr.r_,

ta:,) rer.:or,.rrized it,

l0lt

.i5,000

Wlrat is lhc *:1 irii.rtr:(J !rr:;( lo ,J()tltJlli.,t( t'tt l)t:.:cnrber

A.l I 5.I:,ililil.

i l. l0 1i'l
('. 170.000

;-t:i.i),,rU

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
irr
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

p2.580.000

B.

c. p600.000

Problern l7' Jack Cornpattl' ttrattuf'actures picture fiarnes

ancl rrses.iob
lbllowing costs relate lo tl.le crlrrenl procluctir.rrr ruu:
F.stinrateilorerheird/:xcltr.,iret:fspoilage) pl6CCrl0

Spoilage (estinrateci)
Sales value of spoilecl il"anres
Labor hours

r--,rder

p1.080.000

D.

r:osting srsteru. The

l5.ir00
I 1.50{i

l00.ti0r)

j:p"ilecl lj'arne is P7.00. f)uririg rhe pcrit.ld. I70 fianie:; ar.e spt,iJeti. Each spoile<t frarne
ll.-::i:'11,t,1tt.?ii
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,

;\. l.l::

,r..i ,r;;,r.,.)

B.

{'

1.50

t'1

D. r.85

Prtlblem lS'c)rr Jantra?|

lce f'r'earn r;ii.,,cl irr irg,e:rrrrri autlror';z;rrg T'risha to operate
i.20 13. Magnolia
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

A.

P3SU.0'JU t]. pj00.000

{,.

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

lbllous:

Llnits solil
IJnits on harid

('tj.orl
t)

LI

2"t)00

1.0c0

1.0c0

l.ilO(l
'l

br l\lagnoiia lce (lreanr in 2013?

p+:rJ.6gO

a.jeirrt

f)r.()cess.

'0J

1.50 J

5 0{,'

1.50u

l.-s.u00

i(i{).(i0()

'l

br).9111,t
','

C'ost afier Spirt otT

7 000

5.000

3.0r10

70.000

i0"000

20.000

SV at final poir:t

Adcliiit,rrel iru.rrrrratir'rrr is as
T,:tai

,I

P540.000

SV at Splir ol'l'
.loiut (losr

{:..000

sales ''alLre tlleth'od' $liat'ioint costs were

Assuuriirir the jOiirt cost are allocated using tlre ad.iLrstecl
otrof A. respectivell:
allocated'to product B and rvhat is the sales vaiue at Split
c' 15'000 and 60'000
n.le.ooo u,i,t
D' 12'000 and 60'000
B. 14.286 and
.

os.ooo

63'000

tlte cost-io-cost percelltage

Problern 20.Drew Lopez Cotlstructiorr Cotnp:ny has used
ll'as Pl0.000-000
ruethrtcl tlf recogtlizilltl revellue. Total colttract price

2{Jl2
l
'oo.ii'r',] P700"000
.006.9r"i0 '!
2rll

Realized gross profit (loss)

Cost ittcr.rrred each vear

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

of

conipletion

2013

P(100'000)
4.100.000

D. i"500,000

as lranclrisee of
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
protrleur

rlvt selrli-i.rllrual pavlnetlts tlf Pl00'000 eaclr bcgirttlitlg

cil the agreenrent arrd the halauce is payabi: i,i
The
brrrt the iirarket ratc t-'l' irtterest is ll%
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
ot' :
20 l3' lrrt":l'rretiotlal (''otrpail'r'shcrrlcl l'eCt)i(J ti ;rttcliise re:retttie

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

labror costs filr

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

probler.n J2. Dapte Cr.rrnpa.nv produces tu't'l prrducts

(A artd B). Direct ttraterial arld

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

litotal

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

pcr ttnit assignid to ProdLrct B

A I t:.-it)

u'ill
B.

be

li.l2

C'

activiir

ircLtrs Ltsed. tlre total product cost

D' 1 I 1 45

lrl'60

bLrilding at a price' of
Jack De Vitton' successtllll trid in a corltract fbr faciorv
2011.
2i.lrr
Probient
";l:.ffis06." g,,ii.j.1-i. [,c. uses rhe
a,d the fbllo''ing data
f.r,r.n,og"-ot'-conrpletiou tretltod.

lilr
iulllniu iz.cti
'-"i-'"

i. 1'. 'icit,
"'-i'r-'.

ti,

il,_l,!,:Ul:
Ii0'0uU

Estiurated total ccst it c.)rrlpl!'liorr

lncotrte lecilgtlizr j t; j,iit

\\,hat is the colltract uo-il iltcurred

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

l<irilli'i

ir

20

lll_i!,1_1ll_i
P

PCr

c'5t)'(ri
1-l

'i-i

10'100'000
l'i5O't)r)( l

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

D'i'=10'000

{--:vu;UC0

Bil?Ujt.)yg-

Problerrr24and25.onDecertrber3l'20l].So},]AC'otnpattyg.,1|-,
sigrlitrg oithefbr an initial francliise f'ee ot'p1.000.000. i)l'tliir aniiiurrt. Pl.ltiu.000 vras reccived upon
paymellts, of
atrltual
tht'ee
in
coptract. apd the balance pa.r able b1 a nor,-rr-rlilri:,1 l-ieeiitlg llote' ciite
'I'he
assured'
p500.000. beginning Deceniber il.2cii.
Thr. collecti'oilitl'of the note is not reascrrably
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:
U. P-is8.000 ('. i)1"C00"')[)C l) P+9tt'000
r\. P 0
25. How ntuclt is the rttreartled illterest oll De''.etllbi;r

,\. P498.000

B' P0

. :l{: i+ l

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.
Costs are
Ci,,rt,fuiiu. colsl data for tl"re period aurorurts to tt:.l,1.0OO represelttitrg 20.000 conipleted units'
costs
prtlcessittg
firrther
cottsiders
u'hic!r
assigned to prcldr"rcts D and F by.the nt:i rc-aliz.rblr \,.1iLrc nrethod.
rTleillod'
cost
in s1ibsequeirt operations. Cost is allocated to by-product X usirrg the rerersal
.Aclditionul dutu:

Fn,
Quantit,v produced
Sales price per uitit
Furthe:" prclcessiug cost per uttit
Marketing and adrnin istratil'e expellses
Oneratirro rTrotlt ner tttrif

-1"0'J0 urnits

Pl(r
PJ

ii,.
l)',,

8.000 Lrnits
P]U
I)i

10.000 rinits
P25
P7

Page
What is t[e cost al|:cateil ttr prodrrct E']
B.P122.400
A.

PI17.600

D. P 121.200

ct. Pl 19.512

per hour. but should have taken

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

A. Work in process

460
100

I.ahor price valiatlce

60
500

Labor effi ciettcY variance

B.
(

Payroli PaYable

50

500

Pa1'roll PaYable
W'ork in Plocess
PaYroll Pa1'a[rle

550

Wages expellse
i.atror etfi cietrcY v'at'iattce

500
500
5,{0

Work in Process
Labor eft-icietlcl' variatrce
l-abor Price r''ariance
Payroll PaY'able

Pr',;blem

OU

100

500

l8.The fbllowing selected accolrnts appeared in the trial balattce of

V.

Bab1,'

Sales Cornpattl' as

of Deceruber 31. 2013:

sales P 15.000
200'000
Ittstalmerttreceivable-2013 sales
j
70.000
Inventor'). Decetrlher 1.2012
555-000
Purchases I

P 3.000
415"0c0
i 85.000

Repossessions

Instalment receivable-2012

lnstalnrent sales
Regular sales
Deferred gross Protrt-201

Additional in[ormation:

Irrstalniettt receivable- ?0 il sales. Decetlber 3 i' 20l2

lnventorl,, clf irerl aucl repossessed mercltartdise as of Deceprber 3 l. 201
Cross protit percetltage ott regttlar sales dLrring tlte 1'ear-

50.;60

P
-l

r20.000
95.000

i0oZ orr sales

corresponding
Repossessiolrs \ ere nrade dirring the Yea| l' oras a l0Il sale attd thc
\):i-!
e.i
i'er,lizc.'l
trr'iai
is
tire
What
ir!r)fli'l
accourtl at lhe tittte ot'rept'sscssitrii as P7.l()t).
D'246.010
B. 245.010
A. l-14.5l0

Lrnctlllected

c.245.b10

p16bie6 29. pedro Cornpanl has a c1,cie tiine of 3 days. uses a Materials and In Process (MIP) account'
invelttories are
a,d charges allconversion costs to Cost of Coods l;oicl. et the end of each niortth. all
account balances are
counted. tlreir conversiort costs (CC) compollellts are estimated, and inventory
Coods. The tollowirig intirrr-rtation is 1br
ad.f usted. Raw nraterial cost is backflushed fl'onr MIP to Finished
J

uue:

P29.2s0
Beginning balance MIP account inclLrding P3,000 CC
30.000
Beginning balance of finished goods account. inclLrding P I 0.000 of CC
562"500
Raw nraterials received ort credit
32.000
Ending MIP inr,entory per phl,sical count. inclUding P.1.500 olccl
26"150
ot'('('
i.cluc1i,gPll.750
piil
co,,t.
per
sicrl
Endin! fl,isirecl g..ocis i'i r.i-.ror\
What is the

A.

t'lil tlaterial e ost tli- Lttlits corttpleted itl Jtt:li:'')

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.

66 )13%
q2.000
Pr

Clirss rlargin ott cost

Ll

urealized gross protit

360.000

Cash collections includirrg doun pa)'lrerlts

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

646.000

A.

ss

2.000

i1.8.i0.000

c.

.180.000