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SRFST
SRFST
Answer: A
The amount of fixed costs in operating branches’ 10 warehouses is P400,000 (the fixed cost line intercepts
the vertical axis).
.2 Answer: A
Cost of units sold (0.65 x P800,000) P520,000
Add Desired ending inventory 140,000
Total cost of goods available for sale 660,000
Deduct Beginning inventory 130,000
Budgeted purchases P530,000
.3 Answer: A
4
. Answer: D
Cost of sales P120,000
Add Desired ending inventory 42,000
Total available for sale 162,000
Deduct Budgeted purchases 100,000
Beginning inventory P 62,000
. 5Answer: A
.6 Answer: C
.7 Answer: C
July 400,000
Total 1,261,000
.8 Answer: C
LL MM NN
Total 730,000
.10 Answer: D
.11 Answer: B
Materials required by June production 1,300 x 2 2,600
Add Ending raw materials inventory 1,600 x 2 x 0.5 1,600
Total materials required 4,200
Deduct Beginning materials inventory 1,300 x 2 x 0.5 1,300
Materials to be purchased 2,900
.12 Answer: D
Total 120,400
.13 Answer: D
Raw materials required by June production: 1,200 x 2 2,400
Add: Ending materials inventory 1,300 x 2 . 1.5 3,900
Total materials required 6,300
Deduct Beginning material inventory 2,400 x 1.5 3,600
Budgeted materials purchase 2,700
.14 Answer: A
.15 Answer: B
Purchases 1,010,000
16. Answer: B
17. Answer: D
18. Answer: C
19. Answer: B
20. Answer: D
Collections from:
January sales (P860,000 x 0.8 x 0.75) P516,000
.21 Answer: A
Collections sales of:
June: P8,000 x 0.7 P5,600
May: P7,000 x 0.3 2,100
Total collections from sales P7,700
.22 Answer: B
23. Answer: D
November 20,000
24. Answer: B
The balance of Accounts Receivable, based on the collection pattern for Liberal Sales Company, equals 40
percent of credit sales for that month:
.26 Answer: A
The balance of Accounts Receivable as of January 31, its first month of operations, will increase by P400,000
because the first collection on account sales will be in February.
However, a question of how much increase in Accounts Receivable in February will equal to the difference
between the February credit sales and 70% of January sales.
.27 Answer: D
. 28Answer: A
.29 Answer: C
Total P303,200
.30 Answer: C
January February
Budgeted inventories:
.31 Answer: D
Payments for:
.32 Answer: A
.33 Answer: B
.34 Answer: A
.35 Answer: C
Total 41,600
.36 Answer: C
. 37Answer: B
June P 5,600
July 126,900
.38 Answer: A
Collection of accounts
.39 Answer: A
Budgeted Production
.40 Answer: B
.41 Answer: B
.42 Answer: C
A month’s sales is collected 50 percent each in the first and second month. Therefore, the accounts receivable
outstanding as of March 31 includes March’s sales as well as 50 percent of February sales.
February’s accounts (P186,000 x 0.5) P 93,000
.43 Answer: A
Material P 52
Labor 20
Overhead 10
Total P 82
Effective January 1, 2007, the price of materials will be raised to P60. The unit cost for 2007 production will be
P90. Since the sales of January and February come from December production, only the March sales will have
cost of P90 per thousand.
January and February cost of goods sold (1,700 + 1,200) x P82 P237,800
.44 Answer: A
Cash disbursements
Interest 8,000
Taxes 64,560
Dividends . . 48,420
Borrowings 0 0 47,380
.45 Answer: C
46
. Answer: A
August sales
.47 Answer: B
.48 Answer: D
June Sales:
July sales