Quiz Bee4thyr
Quiz Bee4thyr
Quiz Bee4thyr
1. Revenue from the snack bar and parking lot of not profit hospitals is recorded as:
a. Patient service revenue – Unrestricted
b. Resident Service revenue – Unrestricted
c. Other operating revenue – Unrestricted
d. Non – operating revenue – Unrestricted
3. Total production cost for Susset, Inc. Are budgeted at P 230,000 for 50,000 units of budgeted
output and at P280,000 for 60,000 units of budgeted output. Because of the need for additional
facilities, budgeted fixed costs for 60,000 units are 25% more than budgeted fixed costs for
50,000 units. How much is Susset's budgeted variable cost per unit output?
4. Adly Corp wishes to earn a 30% return on its P100,000 investment in equipment used to
produce product X. Based on estimated sales of 10,000 units of product X next year, the cost
per unit would be as follows:
5. Alabang Co.'s records for the year 2001 showed that there were no beginning and ending work
in process inventories.
Net Sales P700,000
Cost of goods manufactured:
Variable 315,000
Fixed 157,500
Operating expenses:
Variable 49,000
Fixed 70,000
Under variable costing method, the December 31, finished goods inventory would have a cost of:
Average
1. MM, NN and OO partners, share profits on a 5:3:2 ratio. On January 1, 2004, PP admitted into the
partnership with a 10% share in profits. The old partners continue to participate in profits in their
original ratio.
For the year 2004, the net income of the partnership was reported as P12,500. However, it was
discovered that the following items were omitted in the firm's books:
Cruz had decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to
their fair value of P216,000 at June 30, 2008. It was agreed that the partnership would pay Cruz
P61,200 cash for Cruz's partnership interest, including Cruz's loan which is to be repaid in full. No
goodwill is to be recorded. After Cruz's retirement, what is the balance of Merced capital account?
3.Watkins, Inc. Acquires all of the outstanding stock of Glen Corporation on January 1, 2009. At that
date, Glen owns only three assets and has no liabilities
a. If Watkins pays P450,000 in cash for Glen, what amount would be represented as the
subsidiary's Building in a consolidation at December 31, 2011, assuming the book value at that
date is still P200,000?
4.Marie company has under-applied overhead of P9,000 for the year. Before disposition of the
underapplied overhead, selected year end balances from Marie's accounting records were:
Sales 240,000
COGS 144,000
Direct Material Inventory 11,200
Work in process inventory 10,800
Finished goods inventory 18,000
Under Marie's cost accounting system , over or underapplied is allocated to appropriate inventories and
COGS based on year end balances. In its year end income statement, Marie should report COGS?
5.ABC Company temporarily has unused production capacity. The idle plant facilities can be used to
manufacture a low-margin item. The low-margin item should be produced if it can be sold for more
than its
(a) Fixed costs
(b) Variable costs
(c) Variable cost plus any opportunity cost of the idle facilities
(d) Indirect costs plus any opportunity cost of the idle facilities
Difficult
1. On January 1, 2009, Pual Corporation pays P500,000 cash and also issue 2 shares for every share of
Marie Corp. The following balance sheet of Paul Corporation and Marie Corporation before they
entered into a business combination.
Paul Corp. Marie Corpo
Book Book
value FMV value FMV
Cash 550,000 550,000 50,000 50,000
Accounts receivable 50,000 50,000 40,000 40,000
Inventory 150,000 280,000 350,000 500,000
Land 5,000,000 5,500,000 1,000,000 1,200,000
Building 3,000,000 3,500,000 1,800,000 1,780,000
Accumulated depreciation (800,000) (250,000)
Total Assets 7,950,000 9,880,000 2,990,000 3,570,000
2.P, I, N formed a joint venture in 2009 and agreed to divide profits and losses equally. The venture is
terminated on December 31, 2009 even though there are still unsold merchandise. On this date P's trial
balance contains the following account balances before profit and loss distribution: Joint venture cash
debit balance of P120,000; Joint venture account of P24,000; I capital debit balance of P56,000 and N
capital credit balance of P64,000. P receives P18,000 for his share in the venture profit. Furthermore,
he agrees to be charged for the unsold merchandise as of December 31, 2009. The cost of the unsold
merchandise charged to P is?
3.The following information came from the books and records of Davao Corporation and its branch.
The balance are as of December 31, 2009, the fourth year of the corporation's existence.
Home
Office Branch
Dr. (Cr.) Dr. (Cr.)
Sales P(1,700,000)
Shipments to branch P(480,000)
Shipments from home office 720,000
Purchases 360,000
Expenses 420,000
Inventory, January 1, 2009 145,000
(272,000)
Unrealized profit in branch inventory
There are no shipments in transit between the home office and the branch. Both shipments accounts are
properly recorded. The closing inventory at billed prices includes merchandise acquired from the home
office in the amount of P108,000 and P60,000 acquired from the vendors for a total of
P168,000. What is the true branch net income?
4.The Carter Company invested P67,000 in a 4 year machine. The machine's NPV was P8,000 using a
15% cost of capital. Information on cash flows and present value factors is as follows:
5.In considering whether to replace a major item of machinery now or at the end of its useful
life one should ignore
a. Opportunity Cost
b. Fixed Cost
c. Imputed Costs
d. Prime Cost
Reserves:
1.On January 1, 2010, the branch manager of Menangnanggal Company in Capiz City submitted the
following data to the home office:
Petty Cash Fund P 10,000
Sales 564,000
Sales Returns 4,000
Accounts written-off 10,000
Shipment from home office 300,000
Accounts receivable, January 1, 2009 90,000
Accounts receivable, December 31, 2009 100,000
Inventory, January 1, 2009 60,000
Inventory, December 31, 2009 70,000
Expenses (charged by home office) 120,000
All cash collected on accounts receivable are remitted to the home office.
1. The net income of the Capiz Branch for the year ending December 31, 2009 is?
2..Other thing being equal, a profitable baking company that can sell sandwich, one of several
products for only 90% of its total cost (allocated overhead makes overhead makes up 30% of its
total cost) should
(a) buy extra equipment in order to increase output and thereby attempt to lower production
costs per loaf
(b) eliminate the sandwich breach
(c) allocated its overhead by some other method
(d) eliminate the sandwich bread only when its contribution to allocated overhead is reduced to
zero.
3.Under the three-variance method for analyzing factory overhead, which of the following is
used in the computation of the spending variance?
Budget allowance based on Factory overhead applied
Standard hours to production
(a) Yes Yes
(b) Yes No
(c) No Yes
(d) No No
4.The best basis upon which cost standards should be set to measure controllable production
inefficiencies is
(a) engineering standard based on ideal performance
(b) Normal Capacity
(c) Recent average historical performance
(d) engineering standards based on attainable performance
Saleable 5,000
Unsaleable (normal spoilage) 200
Unsaleable (abnormal spoilage) 300
Manufacturing costs totaled P99,000. What amount should Hoyt debit to finished goods?
Easy
1. C
2.A
3.P3
4 P11.
5. P45,000
Average
1.P12,300 x .18= 2214
2. P45,450
3.P285,000
4. P151,500
5.C
Difficult
1. P430,000
2. 78,000
3. 459,000
4. P42,895
5. C
Reserves
1.140,000
2.D
3.D
4.D
5. 93600=99k – (99,000/5500 x 300)