Professional Documents
Culture Documents
20 I 3
PRACTICAL ACCOUNTING PROBLEI""iS It
problem l.Ol October r.20l '. PPC \.'onipanv soltJ Article C)ne ct-rsting P270.000 for P400'000 Article
years
ibr two
B Two, a used article was ae(;i:Dle,.j as down pu,o.,ir.nt aitd tlte balattce on monthly' instalments
thar irrclgde both principal ari.l interesi at lSilo per,vear, starting October 3 l' 2013. P 120,000 was allowed
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)
probleur ?.T5e rcr,.tyrts rlf tlre parruersliip r.rf'E,i'uiit. iialph arl'l Mcrir at the etld ol its fiscal )ear ol.)
B SepternLrer i0. 201-i ri'e as tbllorvs:
P9.000 on tlie first clistribution of cash. tlie cash realizecl ft-om the
initial sale of
lf Mon receiveri
assets was
A. 80.000 B. 65.000 c. 95.000 D. 15.000
Problem 5.Cerry |r,;rrpatl)' adds ttr:ter:'iaI a.t rhe,;1a:-i of pr.oclrrctir--.r,, The follow'ing production infbrmatiott
C
is avaiiable lbr Jun,.::
units
_ __(80% 99ryp!9ii i;1o ,q!19tr19'il I
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 th* t:afitlersliip's iormation. Paul's
A
books shurred thc foilowing:
Cash 2.60ij
Accounts receiv'able i:"00i)
Merchatrd i se i ttvetrtcln Iti.t,0(l
Acccxrltts payahle 6.200
PaLrl. capital 26.40(i
shall be
It was agreed that. tbr establishing Paul's irrvestrrent in the tlrrn. the tollovrilrg adjustnrents
reflectrd:
o Ailo*arrce tbr bad debts of 2o'i, shourlci be set up'
o Merchanclise inventory should be valued at P20.200'
o lrr.epaid e\pense of P350 and accrued expelrse of"P400 shorrld be rect-r5tltized'
Hclvr nruch cash should Claire iuvest tr"r SCCuli'A f)tli:-lhir,1 iilt*t"ir,.f irl tl,'; pafiitership?
A l-i.155 U. 9.{37 '1.
'".{i00 ii' ll'105
Problern 7.-t he tbllcw ing co*tts were aciluntulated lrr Depaf'tent 2 r:t Rodel ComPanY durirrg April:
Cost
r I
I ! 84.00( I rr2.@q
L ___ i__ .___l;91,01(
Productiorr tbr A.pril iu Departurent 2 (in urtiis):
B Matenals ale riot add','d irr Dr:;;artiletrt 2 until the r le:r etrrJ crf pi-acessiltg Departinellt 2
D 8, The capital credit to Mr.rngo Lloyd upon his adnrission trust be:
A.90.000 B. 100.900 c' 88'000 D. 80"000
B 9. 'fhe capital baiar:ce of Jorge. after Morrgo Llo;,d's adnrission tnust be:
A. l8l.34C B. i63,140 c. 175'040 D. 167,300
been Pl 75.
C 10. lf'tlre rnerclraudist.is tiirsold ai \ear circl. the Il.rct-rs branch rrili inverrtorr the ttterchalldise at lvltat
a l11r)tl llt'l
A P6'es0 B' P6'gl0 c P6'775 D'P6'575
ll. lf tlre rnerchandire is uns'tld at ),ear errd, irow nruch wouid A.BC irlcir"rCe as itlVetrtorv in its repoft
A
to stocklrolcer s'i
A. Pi.67s B' P5.850 c' P5'500 D' P5'47s
prgblern l2.Yuiln-v Yc,":Lrr"t Cornpany,produces -y-oc,ut1 itt two depaftrnents-Mi|illg and Finishing ln
Mixirrg" all ingredierr,.e\c(-pr iiuit are aclCed at tlre start of production' In Finishing, frtrit
is added and
theii the nrirture ;; i.,i:i.-;cl into contairiers. A,Jding the fi'i:it to the basic yogurt nixtltre increases the
is irt tlre Fillishirrg
volunre transferrcir iir LLl the utrrnber'of r,.a!ions.,ltirir aclclecr . Any spoiiage that t)cctlrs
the 98 percellt
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 Costs:
Trarrst-erred ln $ e.700
Fruit r0.50c
CC 15.000
(lurrenr (losts:
Transf'erreC lii 12"400
Fi"iiit s4.000
C.,'ontainers l r.000
C]C -- i)8.900
l'()tal Cosr:i s 2l 0.600
C How ruuch is tlte cosi of units tratlsi'erred rlr.tt t-tsitrg l"ieiC,litec-i evcrage'/
A. 148.826 B.l9r. i35 C'' i 70.080 D. 165,210
Dept. A _ -Depf-B
Di rect rnaterials consuired P5.000 P3.000
Dir'ecr labor rate per hottr 4 5
4 4
Productr.iort ol'erhead pel ciireii labor liorrr
D irec t labo r lt ou rs etrr p i .,', c ii 400 200
Adrrrinistlatir e artd othet overlt.::id ctlst 209/uof lLtil prLlclrrctioll cost
Profil nrarktip l:r% oi sellirrg price
Incorne Statement
of 2012'?
How muchis the total estinrated cost to complete b-' the end
A. 2.800.000 B. 1.000.000 . l'400'000 D. i"500,000
as lranclrisee of
protrleur 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
Bonus cil the agreenrent arrd the halauce is payabi: i,i
rlvt selrli-i.rllrual pavlnetlts tlf Pl00'000 eaclr bcgirttlitlg
brrrt the iirarket ratc t-'l' irtterest is ll%
The
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
20 l3' lrrt":l'rretiotlal (''otrpail'r'shcrrlcl l'eCt)i(J ti ;rttcliise re:retttie
ot' :
A.F660.0008F72].0001'.P800.r]00D.Pj00.s00
labror costs filr
(A artd B). Direct ttraterial arld
probler.n J2. Dapte Cr.rrnpa.nv produces tu't'l prrducts
pr.duct A rotal p35 (which iet'lects 4 direct labol iiciur'-s): cJirect rnaterial ancl labor costs fbr Prodrrct B
fl111g{itrlls are rleeded fbr each prodttct'
ttrtal p22 lwhich reflects 1.5 direct labor h,:r.lr's). Thre,: o',erheacl
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'
Douell producds 800 r-r,',its r:f A and 8.000 rrr,its oi B e'eclr
bLrilding at a price' of
Probient 2i.lrr 2011. Jack De Vitton' successtllll trid in a corltract fbr faciorv
";l:.ffis06." g,,ii.j.1-i. [,c. uses rhe a,d the fbllo''ing data
f.r,r.n,og"-ot'-conrpletiou tretltod.
C '-"i-'"
iulllniu iz.cti lilr i. 1'. 'icit,
"'-i'r-'.
ti,
il,_l,!,:Ul: lll_i!,1_1ll_i
Estiurated total ccst it c.)rrlpl!'liorr PCrIi0'0uU P 10'100'000
lncotrte lecilgtlizr j t; j,iit 'i-i
c'5t)'(ri l'i5O't)r)( l
A 24 on i)ecertiber 3l' 20 l3' soNA cotnpaiil li'otlld rt'':'rt:ttize re\'errrle tiotll tiatlchise of:
r\. P 0 U. P-is8.000 ('. i)1"C00"')[)C l) P+9tt'000
25. How ntuclt is the rttreartled illterest oll De''.etllbi;r i I . :l{: i+ l
D
,\. P498.000 B' P0 C 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.
Ci,,rt,fuiiu. colsl data for tl"re period aurorurts to tt:.l,1.0OO represelttitrg 20.000 conipleted units'
Costs are
u'hic!r cottsiders firrther prtlcessittg costs
assigned to prcldr"rcts D and F by.the nt:i rc-aliz.rblr \,.1iLrc nrethod.
in s1ibsequeirt operations. Cost is allocated to by-product X usirrg the rerersal cost rTleillod'
.Aclditionul dutu:
Fn,
-1"0'J0 urnits 8.000 Lrnits 10.000 rinits
Quantit,v produced
Sales price per uitit Pl(r P]U P25
I)i P7
Furthe:" prclcessiug cost per uttit PJ
l8.The fbllowing selected accolrnts appeared in the trial balattce of Bab1,' V. Sales Cornpattl' as
B Pr',;blem
of Deceruber 31. 2013:
sales P 15.000 Repossessions P 3.000
Instalment receivable-2012
415"0c0
Ittstalmerttreceivable-2013 sales 200'000 lnstalnrent sales
j i 85.000
Inventor'). Decetrlher 1.2012 70.000 Regular sales
555-000 Deferred gross Protrt-201 2 50.;60
Purchases I
Additional in[ormation:
r20.000
Irrstalniettt receivable- ?0 il sales. Decetlber 3 i' 20l2
P
95.000
lnventorl,, clf irerl aucl repossessed mercltartdise as of Deceprber 3 l. 201 -l
i0oZ orr sales
Cross protit percetltage ott regttlar sales dLrring tlte 1'ear-
Repossessiolrs \ ere nrade dirring the Yea| l' oras a l0Il sale attd thc
corresponding Lrnctlllected
What is tire trr'iai i'er,lizc.'l \):i-! ir!r)fli'l
accourtl at lhe tittte ot'rept'sscssitrii as P7.l()t). e.i
B p16bie6 29. pedro Cornpanl has a c1,cie tiine of 3 days. uses a Materials and In Process (MIP) account'
a,d charges allconversion costs to Cost of Coods l;oicl. et the end of each niortth. all
invelttories are
account balances are
counted. tlreir conversiort costs (CC) compollellts are estimated, and inventory
ad.f usted. Raw nraterial cost is backflushed fl'onr MIP to Finished
Coods. The tollowirig intirrr-rtation is 1br
J uue:
probleut j0.Jualita Corlpap;- uses iustallrrient rref ltod olaccoutltitlg arld has the following data at lear
end.
B Clirss rlargin ott cost 66 )13%
Pr q2.000
Ll urealized gross protit
Cash collections includirrg doun pa)'lrerlts 360.000