3.

JEJEMON University, a private not for profit university, had the following cash inflows during the year
ended June 30, 2010:

I. P100 million from student tuition

II. P500 million from a donor who stipulated that the money be invested indefinitely

III. P800 million from a donor who stipulated that the money be spent in accocdance with the
wishes of JEJEMONs governing board.

On JEJEMONs statement of cash flows for the year ended June 30, 2010, what amount of these cash
flows should be reported as operating activities?

a. P900 million b. P800 million c. P600 million d. P1.3 billion

4. Under UST Hospitals established rate structure, the hospital would have earned patient service revenues
of P9,000,000 for the year ended December 31, 2009. However, P6,750,000 was collected because of
charity allowance of P1,500,000 and discounts of P750,000 to third party payors. For the year ended
December 31, 2009, what amount should US record as net patient service revenues?

a. P6,750,000 b. P7,500,000 c. P8,250,000 d. P9,000,000

5. Tristan Corp manufactures product J and product K from joint process. For product J 4,000 units were
produced having a sales value at split off of P15,000. If product J were processed further, the additional
cost would be P3,000 and the sales value would be P20,000. For product K, 2,000 units were produced
having a sales value split off of P10,000. If product K were processed further, the additional cost would
be P1,000 and the sales value would be P12,000. Using the sales value at split off method, the portion of
the total joint costs allocated to product J was P9,000, what were the total joint cost?

a. P14,400 b. P19,000 c. P15,000 d. P18,400

6. BOBADS produces main products A and B.The process also yields by product C. NRV of by product is
subtracted from joint production cost of A anb B. The following information pertains to production in July
2010 at a joint cost of P162,000.

Product Units Produced Market Value Additional Cost After

Split Off

A 3,000 P120,000 -

B 4,500 105,000 -

C 1,500 21,000 P9,000

If BOBADS uses the NRV method for allocating joint cost, how much was the total cost of Product A?

a. P56,000 b. P80,000 c. P60,000 d. P82,026

7. The JIT Corp uses the materials and in process (MIP) inventory account. At th end of each month, all
inventories are counted, their conversion components are estimated, and inventory account balances are
adjusted accordingly. Raw materials is backflushed from MIP account to finished goods. The following
data is for the month of May:

Raw materials purchases P5,100,000

Ending balance of MIP account 314,250

Conversion cost incurred 36,000

Conversion allocated 39,750

Beginning balance of MIP account 290,250

The amount of direct materials and conversion costs to be backflushed to finished goods are:

a. P5,076,000, P36,000 c. P5,076,000, P39,750

b. P5,100,000, P36,000 d. P5,100,000, P39,750

8. German manufacturer of variety of GEMS. The owner Chris had recently decided to implement JIT
system. The following transactions occurred:

-Raw materials totaling P45,000 were purchased

-P40,000 materials were requisitioned for production

-Direct labor cost of P25,000 were incurred

-Indirect labor cost amounted to P120,000

-Utilities cost totaled P50,000