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Which of the following is an inventory account of a manufacturer but Other assets P 405,000 Accounts payable P108,000
not of a merchandiser?
a. Cost of goods manufactured Quiel, loan 18,000 Quiel, capital 175,500
b. Merchandise Inventory Roger, capital 139,500
c. Work in process inventory Total P 423,000 Total P 423,000
d. Direct labor
11. The partners have decided to liquidate the partnership. If the other
2. Cost of goods manufactured is used to compute assets are sold for P346,500, what amount of the available cash
a. Cost of goods sold should be distributed to QUIEL?
b. Manufacturing overhead applied a. P136,000 c. P122,400
c. Direct materials used b. P156,000 d. P195,000
d. Finished goods inventory
On January 1, 2014, the partners SELYA, TESSA, and URSULA, who share
3. Which of the following is a period cost? profits and losses in the ratio of 5:3:2, respectively, decided to liquidate
their partnership. On this date the partnership condensed balance sheet
a. Materials inventory was as follows:
b. Direct labor
c. Manufacturing overhead Cash P 45,000 Liabilities P 54,000
d. Selling expenses Other assets 225,000 Selya, capital 72,000
Tess, capital 81,000
4. Job order costing would be an appropriate system to account for the Ursula, capital 63,000
manufacture of Total P 270,000 Total P270,000
a. Aircraft
b. Matches
c. Zippers On January 15, 2014, the first cash sale of other assets with a carrying
d. Cardboard boxes amount of P135,000 realized P108,000. Safe installment payments were
made on the same date.
5. A written order sent to inform the purchasing department of a need 12. How much cash should be distributed to each partner?
for materials is called a SELYA TESSA URSULA
a. P15,000 P51,000 P44,000
a. Purchase order
b. P40,000 P45,000 P35,000
b. Purchase requisition
c. P55,000 P33,000 P22,000
c. Receiving report
d. P13,500 P45,900 P39,600
d. Materials requisition form
CLAIRE, DAISY, and ELSIE formed the CDE Partnership on August 1, 2015,
6. Under a periodic inventory system, the purchase of materials is
with the following assets, measured at fair market values, contributed by
recorded in an account entitled
each partner:
a. Cost of Goods Sold CLAIRE DAISY ELSIE
b. Purchases Cash P 324,000 P108,000 P129,600
c. Materials inventory Accounts receivable
d. Work in Process Inventory 73,080 - 91,800
Plant, Property, &
7. The total of the materials subsidiary ledger inventory cards must be Equipment (PPE) 1,620,000 340,200 -
equal to the amount in the following account
a. Cost of Goods Sold A part of CLAIRE’s cash contribution, P216,000, comes from personal
b. Purchases borrowings. Also, the PPE of CLAIRE and DAISY are mortgaged with the
c. Materials Inventory bank for P972,000 and P72,000, respectively. The partnership is to assume
d. Work in Process Inventory responsibility for these PPE mortgages. The partners have agreed to share
profits and losses on a 5:2:3 ratio, to CLAIRE, DAISY, and ELSIE, respectively.
8. Which of the following is usually prepared daily by employees for 13. What is the capital balance for each partner at the opening of
each job worked on? business on August 1, 2015?
a. Job time tickets a. CLAIRE, P1,045,080; DAISY, P376,200; & ELSIE, P221,400
b. Time card b. CLAIRE, P1,161,200; DAISY, P418,000; & ELSIE, P246,000
c. Punch card c. CLAIRE, P1,987,500; DAISY, P189,000; & ELSIE, P217,500
d. Cost control card d. CLAIRE, P1,095,120; DAISY, P547,560; & ELSIE, P182,520

9. Under a perpetual inventory system, the purchase of materials is On January 1, 2015, FRIDA and GLACE formed a partnership by
recorded in an account entitled contributing cash of P405,000 and P270,000, respectively. On February 1
2015, Partner FRIDA contributed an additional P135,000 cash to the
a. Cost of Goods Sold partnership and on August 1, 2014 Partner FRIDA made a permanent
b. Purchases withdrawal of P67,500. On May 1, 2015, Partner GLACE contributed
c. Materials inventory machinery with a fair market value of P90,000 and a net book value of
d. Work in process inventory P75,000 when contributed. On November 1, 2015 Partner GLACE
contributed an additional P45,000 cash to the partnership. Both partners
10. Factory worker fringe benefit costs are usually charged to withdrew one-fourth of their salary allowances in 2015.
a. Work in process Inventory
b. Direct labor The partnership reported a net income of P257,400 in 2014 and the profit
c. Administrative expenses and loss agreement are as follows:
d. Factory overhead a. Interest at 6% is allowed on average capital balances;
b. Salaries of P2,700 per month to each partner;
The following condensed balance sheet is prepared for QUIEL and ROGER, c. Bonus to FRIDA of 10% of net income after interest, salaries, and
who share profits and losses in the ratio of 60:40, respectively: bonus; and
d. Balance to be divided in the ratio of 6:4 to FRIDA and GLACE,
2014 sales 102,400 51,200
14. Determine how the net income will be allocated to the partners: 2015 sales 0 153,600
a. FRIDA, P160,000 and GLACE, P126,000 Accounts written off from
b. FRIDA, P 180,000 and GLACE, P106,000 2014 sales 25,600 76,800
c. FRIDA, P170,000 and GLACE, P116,000 2015 sales 0 153,600
d. FRIDA, P153,000 and GLACE, P104,400 Gross profit rates 40% 30%

18. What amount should SILVER PLATTER COMPANY report as deferred

HAIDEE and ISABEL are partners sharing profits and losses in the ratio of gross profit in its December 31, 2015 balance sheet?
60% and 40%, respectively. The partnership balance sheet at August 30, a. P 76,800 c. P 114,688
2014 follows: b. P102,400 d. P 66,560

Cash P 12,150 Accounts payable P 13,500 BROWN DERBY COMPANY began operations on June 1, 2015. The
Other assets 119,700 Haidee, Loan 5,850 following information are extracted from its records at year-end. Cost of
Isabel, Loan 9,000 Haidee, capital 81,000 installment sales, P2,991,424; Cost of Regular Sales, P1,680,000. Mark-up
Isabel, capital 40,500 on installment sales is 40% of cost while regular sales is 33-1/3% based on
Total P 140,850 Total P140,850 sales. At the end of 2015, the balance of Installment accounts receivable is
P2,520,000; Accounts receivable is P1,176,000. Operating expenses
At this date, JOSIE was admitted as a partner for a consideration of P43,875 (includes losses on repossession) total to 75% of the realized gross profit.
cash for a 40% interest in capital and in profits. 19. What is the net income for the year ended December 31, 2015?
15. Assume JOSIE is admitted by purchase of 40% each of the original a. P329,142 c. P 543,984
partners’ interest, determine how the P43,875 will be apportioned to b. P546,000 d. P 279,918
a. HAIDEE, P32,850 and ISABEL, P15,900 BEIGE STALKS CORPORATION, which began operations on January 1, 2014,
b. HAIDEE, P32,450 and ISABEL, P16,300 appropriately uses the installment method of accounting for revenues. The
c. HAIDEE, P29,565 and ISABEL, P14,310 following information is available for the years ended December 31, 2014
d. HAIDEE, P32,950 and ISABEL, P15,800 and 2015:

PRINCESS COMPANY filed a voluntary bankruptcy petition on August 2014 2015

15, 2013 and the statement of affairs reflect the following amounts: Cost of installment sales P 960,000 P1,920,000
BOOK ESTIMATED GP realized on sales made in
CARRYING CURRENT 2014 144,000 86,400
VALUE VALUE 2015 - 192,000
GPR based on cost 30% 40%
Pledged with fully secured 20. What is the ending balance of installments receivable at December
P 150,000
creditors P 185,000 31, 2015?
Pledged with partially a. P2,265,600 c. P1,632,000
secured creditors 60,000 b. P1,704,000 d. P1,176,000
Free Assets 160,000
P 450,000
P 405,000 On January 1, 2014, MAXX SERVICES, INC. signed an agreement authorizing
LALLA COMPANY to operate as a franchisee over a 20-year period for an
initial franchise fee of P137,500 received when the agreement was signed.
P 35,000
Liabilities with priority LALLA commenced operations on July 1, 2014, at which date all of the
Fully secured creditors initial services required of MAXX SERVICES had been performed. The
Partially secured creditors agreement also provides that LALLA must pay annually to MAXX a
Unsecured creditors continuing franchise fee equal to 5% of the revenue from the franchise.
P 535,000
LALLA COMPANY’s franchise revenue for 2014 was P1,100,000.
21. For the year ended December 31, 2014, how much should MAXX
16. How much cash will be available to pay the unsecured non-priority
SERVICES record as revenue from franchise fees with respect to the
LALLA account?
a. P240,000 c. P160,000
a. P192,500 c. P123,750
b. P180,000 d. P125,000
b. P137,500 d. P 60,500
The following data were taken from the statement of affairs of
GREAT DANE, INC., franchisor, entered into a franchise agreement with
Assets pledged for fully secured liabilities (current
PITBULL COMPANY, franchisee, on July 1, 2015. The total franchise fees
fair value, P75,000) P 90,000
agreed upon is P550,000, of which P50,000 is payable upon signing and the
Assets pledged for partially secured liabilities
balance is to be covered by a note payable in four equal annual
(current fair value P52,000) 74,000
installments. The direct franchise cost incurred was P325,000. Indirect
Free assets (current fair value , P40,000) 70,000
franchise expenses of P31,250 was also paid. The relevant interest rate is
Unsecured liabilities with priority 7,000
12% and the note is reasonably assured of collection. The agreement also
Fully secured liabilities 30,000
provides for the payment of continuing franchise fees at 4% of the
Partially secured liabilities 60,000
franchisee’s gross sales. The franchise outlet commences its operations on
Unsecured liabilities without priority 112,000
December 1, 2015 and had a gross sales of P250,000 for the month.
22. Assuming the notes are interest-bearing, how much net income will
17. The amount that will be paid to creditors with priority is:
be reported for 2015?
a. P7,000 c. P7,500
a. P198,750 c. P 233,750
b. P6,000 d. P6,200
b. P 77,550 d. P 73,750
SILVER PLATTER COMPANY which began operations on January 2, 2014,
On January 2, 2015, QUICKBUILD ERECTORS entered into contract to
appropriately uses the installment method of revenue recognition. The
construct two projects. The following data relate to the construction
following information pertains to the company’s operations for 2014 and
Project A Project B
2014 2015
Contract price P945,000 P675,000
Sales P 307,200 P460,800
Cost incurred during 2015 540,000 630,000
Collections from
Estimated costs to complete 270,000 157,500
Billings to customer 337,500 607,500 93,750
23. What amount of gross profit should QUICKBUILD ERECTORS report in Shipments to Branch 75,000
its 2015 income statement under the following methods? Branch Inventory Allowance
Percentage of Zero Profit 19,750
Completion Method Method Sales 115,000 176,500
a. P 0 P (90,000) Merchandise Inventory, Dec 31
b. P (112,500) P (22,500) 14,000 10,350
c. P ( 22,500) P 0
d. P ( 22,500) P(112,500) P4,350 of the branch's ending inventory came from purchases from
suppliers other than the home office.
24. BEST - EVER CONSTRUCTION, INC . recognizes construction revenue
and costs using the percentage of completion method. During 2014, 27. As far as the home office is concerned, the cost of sales of the branch
a single long-term project was begun which continued through 2015. was:
Information on the project follows: a. P 97,120 c. P121,400
2014 2015 b. P102,850 d. P131,850
Accounts receivable P350,000 P1,050,000
Incurred costs during year 367,500 672,000 During the year 2015 the Bacolod Corporation bills its Iloilo branch at 140%
Construction in progress 427,000 1,274,000 of cost. Goods billed at P346,500 were shipped to the branch. The account
Billings on contract 350,000 1,470,000 Allowance for overvaluation has a balance of P122,400 before adjustment.
The construction accounts are at amounts t0-date. The beginning inventory of the branch from the home office at cost is
P93,600; the beginning inventory of the branch from outsiders is P15,200,
What is the gross profit recognized from this long-term contract? purchases from outsiders is P130,500.
2014 2015 28. Cost of goods available for sale of the Iloilo Branch in 2015 is
a. P 77,000 P 798,000 a. P486,800 c. P609,200
b. 77,000 350,000 b. P623,240 d. P463,500
c. 59,500 448,000
d. 59,500 175,000 GHI Company bills its Bulacan Branch for merchandise shipments at 125%
of cost. As of cut-off date, December 31, 2015, the following data were
CIGNAL ERECTORS began operations on January 2, 2015. During the available:
year, the company entered into a contract with TEAM Company to Mdse. Fr Home Mdse.
construct a manufacturing facility. At that time CIGNAL estimated Office(at billed Purchased
that it would take five years to complete the facility at a cost of prices) from Outsiders
P3,937,500. The total contract price for the construction of the facility Total
is P5,468,750. During the year, the company incurred P962,500 in Merchandise,
construction costs related to the construction project. The estimated December 1 P300,000 P120,000 P420,000
cost to complete the contract is P2,730.000 TEAM was billed and paid Additions to stock
30% of the contract price subject to a 10% retention. during
December 450,000 360,000 810,000
25. Using the percentage of completion method, how much is the excess Merchandise,
of Construction in Progress over Contract Billings or Contract Billings December 31 420,000 150,000 570,000
over Construction in Progress?
a. P273,437 (current liability) The branch returned P15,000 worth of merchandise to the Home Office
b. P273,437 (current asset) acquired at billed price.
c. P437,500 (current asset) 29. The amount of the allowance for overvaluation account that was
d. P437,500 (current liability) realized as income in view of branch sales for the month of December
Presented below are items taken from the unadjusted trial balances of NCR a. P63,000 c. P87,500
Company and its Manila Branch on December 31, 2015: b. b. P66,000 d. P84,000
Home Office Branch Books
Books The Batangas Corporation operates a branch in Lipa City. The Home Office
Shipment to branch P2,250,000 ships merchandise to the branch at 125% of its cost. Selected information
AFOVOBI 749,250 from the December 31, 2015 trial balance are as follows:
Shipment from HO P2,925,000 Home Office Branch Office
Purchases (from OV) 1,084,500 Books Books
MI, January 1 921,375 Sales P600,000 P300,000
MI, December 31 365,625 Shipments to branch 200,000
Sales 4,800,000 Purchases 350,000
Expenses 382,500 Shipments from Home Office
Assuming that the branch ending inventory acquired from other vendors Inventory, January 1 100.000 40,000
(OV) is P73,125 Allowance for Overvaluation of
branch Inventory 58,000
26. What is the net income (loss) of the branch insofar as the home office Expenses 120,000 50,000
is concerned?
a. P534,000 c. P315,000 Inventory at December 31, 2015:
b. P681,750 d. (P147,750) Home Office P30,000
Branch Office 60,000
Teardrops Commercial Corp. maintains a branch in Iloilo City. Selected
balances taken from the books of Teardrops and its Bacolod City branch 30. The combined net income of the home office and the branch after
as of December 31, 2015 are as follows: adjustment is:
Home Office Branch Office a. P326,000 c. P500,000
Merchandise Inventory, Jan 1 b. P496,000 d. P280,000
P 12,000 P 8,000
Purchases 150,000 30,000
Shipments from Home Office
Quad Corporation purchases all of the net assets of Chrome, Inc., for
P320,000. Immediately prior to the combination, Chrome’s net assets 36. P Company acquired a 90% interest in S Company in 2013 at a time
were carried on the books at P180,000, and Chrome had retained earnings when S Company's book values and fair values were equal to one
of P24,000. The fair value of Chrome’s net assets at the date of another. On January 1, 2015, S sold a machine with a P24,000 book
combination is P248,000. Quad Corporation had retained earnings of value to P Company for P48,000. P depreciates the machine over 10
P40,000 and no goodwill immediately prior to the combination years using the straight line method. Separate incomes for P and S for
31. Immediately after the combination, the combined company reports 2015 are as follows:
goodwill and retained earnings of: P Co. S. Co.
Goodwill Retained Earnings Sales P960,000 P560,000
a. P 0 P 40,000 Gain on sale of machinery 24,000
b. P 0 P 64,000 Cost of goods sold (400,000) (152,000)
c. P 72,000 P 40,000 Depreciation expense (240, 000) (72,000)
d. P 72,000 P 64,000 Other expenses (96,000) (240,000)
Separate incomes P224,000 P120,000
The Carl Company will issue P10 par value common stock for the net assets
of PBA Company. The fair market value per share of Carl’s common stock The consolidated net income for 2015 is:
is P40. The following is the list of accounts of PBA Company on the date of a. P344,000 c. P310,400
the acquisition. b. P322,400 d. P312,560
Book Value Fair Market Value
Current assets P280,000 P 320,000 RICH Corporation paid P1,125,000 for an 80% interest in HARD Corporation
Plant assets (net) 680,000 1,280,000 on January 1, 2015 at a price P37,500 in excess of underlying book value.
Liabilities 320,000 The excess was allocated P15,000 to undervalued equipment with a ten-
Common stock 64,000 year remaining useful life and P22,500 to goodwill which was not impaired
Additional paid-in capital 256,000 during the year. During 2015, HARD Corporation paid dividend of P60,000
Retained earnings 320,000 to RICH Corporation. The income statements of RICH and HARD for 2015
32. To have an income from acquisition of P120,000, the number of are given below:
shares to be issued by Carl Company should be” RICH HARD
a. 30,000 shares c. 29,000 shares Sales P2,500,000 P1,000,000
b. 30,400 shares d. 35,000 shares Cost of sales (1,250,000) (500,000)
The Carl Company will issue P10 par value common stock for the net assets expense (250,000) (150,000)
of PBA Company. The fair market value per share of Carl’s common stock Other expense (500,000) (225,000)
is P40. The following is the list of accounts of PBA Company on the date of Net income P500,000 P125,000
the acquisition.
Book Value Fair Market Value
37. Consolidated net income for 2015 is
Current assets P280,000 P 320,000
a. P632,125 c. P623,125
Plant assets (net) 680,000 1,280,000
Liabilities 320,000 b. P263,125 d. P632,215
Common stock 64,000
Additional paid-in capital 256,000 P Corporation acquired 70% of the voting common stock of S
Retained earnings 320,000 Company at a time when S Company’s book values and fair values
were equal. Separate incomes of P Corporation and S Company for
33. To have a goodwill of P 120,000, the number of shares to be issued 2015 are as follows:
by Carl Company should be P Corporation S Company
a. 30,000 shares c. 29,000 shares Sales 633,600 350,400
b. 30,400 shares d. 35,000 shares Cost of Goods Sold 384,000 192,000
Operating expenses 115,200 96,000
On August 1, 2014, Blite Company paid P850,000 for all the net assets of Separate income from own
Ong Enterprises in a transaction properly recorded as a purchase. The operations 134,400 62,400
recorded assets and liabilities of Ong Enterprises on August 1, 2014, follow:
Cash P 80,000 Intercompany sales from P to S for 2014 and 2015 are summarized as
Inventory 240,000 follows:
Property and equipment, net 480,000 Cost Selling Unsold at
Liabilities (180,000) Price year-end
Intercompany sales –
On August 1, 2014 it was determined that the inventory of Ong had a fair 2014 240,000 374,400 30%
market value of P190,000, and the property and equipment (net) had a fair Intercompany sales –
market value of P560,000. 2015 168,000 264,000 40%
34. What is the amount of goodwill resulting from the business
combination? 38. The 2015 consolidated income statement will show cost of goods sold
a. P 0 c. P200,000 of
b. P 20,000 d. P230,000 a. P 310,080 c. P 384,000
b. P 576,000 d. P 192,000
35. Stain Corporation is an 80%-owned subsidiary of Paint Corporation.
During 2014 Stain sold merchandise that cost P96,000 to Paint for On September 1, 2015 Junjun Company received an order for equipment
P128,000. Paint's ending inventory at December 31, 2014 contained form a foreign customer for FC 300,000 when the Philippine peso
unrealized profit of P6,400 from the intercompany sales. During 2015 equivalent was P96,000. Junjun shipped the equipment on October 15,
Stain sold merchandise that cost P112,000 to Paint for P152,000. One- 2015, and billed the customer for FC 300,000 when the Phil. Peso
half of this remained unsold by Paint at December 31, 2015 For 2015 equivalent was P100,000. Junjun received the customer’s remittance in full
Paint's separate income was P200,000 and Stain's reported net on November 16, 2015, and sold the FC 300,000 for P105,000.
income was P152,000. 39. In its income statement for the year ended December 31, 2015,
Junjun should report a foreign exchange gain of
The consolidated net income for 2015 will be: a. P5,000 c. P9,000
a. P302,000 c. P310,720 b. P4,000 d. No gain no loss
b. P338,400 d. P274,500
Alecks Corporation had the following foreign currency transactions during Materials added 20,000 4,000 5,000
2015 Conversion costs 10,000 10,000 16,000
a. Merchandise was purchased from foreign supplier on January 20, Closing work in
2015 for the Peso equivalent of P90,000. The invoice was paid on process 6,000 9,000 4,000
March 20, 2015 at the Phil. Peso equivalent of P96,000.
b. On July 1, 2015, Alecks borrowed the Philippine peso equivalent of 45. What was the value of the output transferred from Process 3 to the
P500,000 evidenced by a note that was payable in the lender’s local finished goods warehouse for the month of September?
currency on July 1, 2015. On December 31, 2015, the Phil. Peso a. P63,000 c. P67,000
equivalent of the principal amount and accrued interest were b. P65,000 d. P69,000
P520,000 and P26,000 respectively. Interest on the note is 10% per
annum. Lego Plastics, Inc. has two joint products, ABBA and ADDA, and uses the
net realizable value method of allocating joint costs. The total joint costs
40. In Aleck’s income statement, the amount that should be included as for the year 2000 amounted to P300,000. During the year, additional
a foreign exchange loss processing costs after split-off were P160,000 for ABBA and P240,000 for
a. P 0 c. P 6,000 ADDA. Lego produced 16,000 units of ABBA and 8,000 units of ADDA
b. P21,000 d. P27,000 during the year. The selling price for ABBA is P20.00 and for ADDA is
On April 8, 2013, CALAMBA CORPORATION purchased merchandise from 46. The portion of joint costs allocated to ADDA during the year is
an unaffiliated foreign company for 10,000 units of the foreign company’s a. P175,000 c. P180,000
local currency. CALAMBA paid the bill in full on March 1, 2015 when the b. P225,000 d. P150,000
spot rate was P0.45. The spot rate was P0.60 on April 8, 2013 and was
P0.55 on December 31, 2014. Lee Company produces two products in a single operation, Bex and Rom.
41. For the year ended December 31, 2014, CALAMBA should report a Joint production cost for June, 2014 were P30,000. During the month,
transaction gain of further processing costs beyond the split-off point needed to convert the
a. P1,500 c. P1,000 products into salable form were P25,000 and P35,000 for 1,600 units of
b. P 500 d. P 0 Bex and 800 units of Rom, respectively. Bex sells for P50 per unit and Rom
sells for P100 per unit. Lee uses the net realizable method for allocating
On December 1, 2014, a Philippine firm purchased a speculative hedge to joint product costs.
buy 30,000 foreign currency when the spot rate was P1.10 and a 60 day 47. For June, 2014, the joint cost allocated to product Bex were
forward rate was P1.12. The spot rate at December 31 (the company’s a. P20,000 c. P13,500
year-end was P1.25 and a 30-day forward rate was P1.13. When the b. P16,500 d. P10,000
speculative hedge was exercised on January 31, 2015 the spot rate was
P1.11 and a 30 day forward rate, P1.12. The accounting records for 2014 of Wagner Music Co. showed the
42. The journal entry to record this hedge would include a debit to following:
Contract Receivable in the amount of Decrease in raw materials inventory P 45,000
a. P33,600 c. P33,000 Decrease in finished goods inventory 150,000
b. P 600 d. P 0 Raw materials purchased 1,290,000
Direct labor payroll 600,000
43. The amount of foreign exchange gain/loss that would appear on the Factory overhead 900,000
income statements of the Philippine company resulting from this Freight-out 135,000
speculative hedge for the years ended 2014 and 2015 are 48. The cost of raw materials used for the period amounted to
a. 2014 = P300 loss; 2015 = 600 loss a. P1,245,000 c. P1,335,000
b. 2014 = P300 gain; 2015 = 600 gain b. P1,290,000 d. P1,380,000
c. 2014 = P300 loss; 2015 = 600 gain
d. 2014 = P300 gain; 2015= 600 loss The following information relates to Job No. 2468, which is being carried
out by Flexy Co. to meet a customer’s order.
From the following data, question 16 to 18 should be answered. Dept. A Dept. B
Opening inventory 4,000 units Direct materials used P5,000 P3,000
Percentage of Value Direct labor hours employed 400 200
Completion Direct labor rate per hour P4.00 P5.00
Materials 100% P1,992 Overhead rate per DL hour P4.00 P4.00
Labor 50% 1,074 Adm. and other overhead 20% of full production cost
Overhead 50% 846 Profit markup 25% of selling price
Put in process 20,000 units
Materials value P12,000 49. The selling price to the customer of Job 2468 is:
Labor 9,984 a. P16,250 c. P17,333
Overhead is 100% of labor cost b. P20,800 d. P19,500
Units completed and transferred 21,000 units
Units in process at the end 3,000 units Rumors Company applied factory overhead as follows:
Materials 100% Department Factory Overhead Rate
Labor and overhead 60% Fabricating P7.75 per Machine hour
44. The equivalent production for material is Spreading 15.10 per Machine hour
Under Average Under FIFO Gossiping 2.125 per Machine hour
a. 24,000 20,000
b. 20,000 21,000 Actual machine hours are: 19,000 hours for fabricating; 27,500 hours for
c. 20,000 24,000 spreading and 5,500 hours for gossiping.
d. 21,000 20,000
50. If the actual factory overhead cost for the period is P574,375, how
Sangley, Inc. manufactures a product which goes through three much is over (under) applied factory overhead?
consecutive processes, Process 1, Process 2, and Process 3. Data for the a. (P11,875.00) c. (P 187.50)
month of September, 2006 are as follows: b. (P23,562.50) d. (P76,125.00)
Work in Process,
beg. P8,000 P13,000 P2,000