CPA REVIb],W SCHOOL OF TIIE PHILIPPINES

Manila

II

Practical Accounting Froblerns

Solutions:

1.

400,000
40.000

Selling price

Less: Over-ailowance t120k

80k)

360p90

Net Price
GP rate (3501"r - 27Ok)

2s%

36Ok

Monthly insi.allments (400k

120ki/

13.576.42

7A.62.4

30,608.71
80,000.00
110.608.71

Collections on principal l1O,A75 47 + i0,202.3tJ r 1C,329,91)

NRV of traded tn merchandise

Totalcollections

25o/o

GP rate

RGP

7.

Priority 2 (9,000
Priorit,v

I $5/37

22,500

.5)l

7,500
30,000

Total payment to partners

Payrner', c of lia bil ities

59-000
80,000

Totalpaymenis
Less: Cash before lrquidation
Cash receive d fror"n sale '.-rf tlon ca:'h a:-sills

.i5.aaa
6s.000

G.dj

5. Beg WIP LM 24,500+6t1,905 = 93,405

Ttl Material

'

--

CC 1.0S x

5,500 =5J15
99,180

S&C [1,1],,800 x

{1.05+.63)l]l/,!A
287,044

6. Claire investment i.26.,",k --;-4A +2,7A0 + 350

1.ltlt3
I

400)

14.155

Jorje
150,000
6,000
15,000
8,700)

Balances

nterest

laries
Remainder

Sa

Withdrawals \22\ x 5'2 'rueeks)

5A

-21-

L1-.700)

1s0.600

L2/31/1.3 Balances

*Net income (115

6.5

5i = 2.2,500

Jaymes

150,000
6,000
10,000
5,800)
11,700)
t-48.500

(
(

\
7.
FIFO inventory assumption

Dept
Complete
Eq-End WIP
- Eq-Begin
EP.WA

Unit
Cost
End WIP

OO0
5,000
(2,000)
4-_qa-q
20,

MAT

cc

2O;-OO0

20,000

2,OOA

(1,200)

20._a_a-q

184,000 = 8.00
23,000

2_0.,

t_qg

34,000 = 1.74
20,000

= L4.74

104,000 = 5.00
20,800

,tr0,000

Dept 1 = 5,000 units x 8.00

CC = 2,000 units x 5.00

10,000
5!,-A-qg
80.000

8. M.L. Capital (150,600 + 148,500 + 100,900) xZA%

L53.140

9. Jorje Capital (150,600 + (20,900 x 609'o))

10.

Transfer price (5.5k xL20%

6,600.00

Freieht

175.00

Total

6,775.00

11.

Cost

5,500.00

Freight

175.00

Total

5,675.00

12.

BWIP

Trans. ln
Fruit
Total units

5,000
5,500
*L,?OA11,700
9,000
7,1a0
1,000

9, 000

Container
9, 000

7,7O0

L,020

1,-000

980

u-Zgq

u-_zag

-9-_A-A_A

u-a_q0

Fru.il

TI

Transferred Out
EWIP

Abnormal Spoilage

CC

9, 000

Costs:

Fruit

TI

BWIP

Current
EUP

Per unit

9,700
t2 ,4OO
22,\OQ

1o ,500
54 , 000

11 , ?00

11,700
5.51

1.89

64 / 500

Container
0

11,000
11,000
9,000

L22

cc
15,000
98,000
113, 000
11 ,000
LO.2'l

Cost Assignment:
EWIP
P 3,213

l-,700 x $t.gg =

9,367

sS,5t =
1,O2Ox$ta.zt =

1.,700 x

-10,475

Spoilage
1,000 x st.gg =
1,000 x 55.51 =

$ 23,055

D 1,890

5,510
10,065

980 x S10.27 =
Transferred Out
$210,600 - 23,055 - t7,465 =

17,465

_170.080

13. Selling Price = 8,200 + 4,800 = 13,000 X

!-') = 15,600/'75 = 20,800

4A

l"+.

Shipments

360,000.00

Retu rn

(24,000.c0)

coGAS

i g:0,oo0.oo

Multiply Qa%|L20%)
Allowance

a.L7

55,000.00

15.

Percentage of completion (150k

25%

600k)

Estimated cost to complete ((150k

35k)

345,00!

I 2\?6.\ x75%

16.

Down

2,000,000.00

lnstallment

1,000,000.00

Total

3,000,000.00

GPR

(3.s/s)

0.70

RGP

2,100,000.00

lnterest (3m x 15%)

480,000.00

Net income

2,580,000.00

17. Answer: (160,000 + 25,000

18.

- 11,500)/100,000 = \.74

19.

NRV
JC
60,000 36000
25,000 15,000
15,000 9,000
100,000

6a%

60,000

20,
Total cost incurred at completion (10M

(200 + 700

2012 Cost incurred (9.2M - (1.8M + a.1M))

201.2 percentage of completion (1.8M + 3.3M +

100))

900)/ 10M

g,2oo,00o
3,300,000
60%

2012 Est'd cost to complete ((1.8M + 3.3M) I 60%lx4o%

Total cost incurred at completion (10M - (200 + 700 - 100))

3,400,000
9,200,000

2012 Cost incurred (9.2M - (1.8M + 4.1M))

2012 percentage of completion (1,8M + 3.3M +

3,300,000
60%

2012 Est'd cost to complete ((1.8M + 3.3M)

900)/

10tu1

60%)x4A%

3-40!-0!0

Page 4
71.
PV

360,000,00

PVF

o.94

PV-July

338,400.00

DP

300,000,00

Revenue

638,400.00

TotaloH

ProPortion

Aliocated

l-tnits

OH

Produced

DM and DLlUnit

715,s96.33

0.917431.1.93

(80,000/87,200)

23.
20t2.
13,000,000
9,750,000

Contract price
Less: Estimated cost at comPletion
Total estimated Profit

g4pa0

20%
60%

203.2-percentage (650 I 3,250\

2013- percentage (1,360 l2,600l
2013 Cost incurred (10.4M x60%)

2013
13,000,000
10,400.000
2-690t000

(9'75M x20%)

4.290.000

24. No initial service Yet

25.

26.2A4,OOO

Product

-8,000 = 196,000

= 196,000

300,000 X 180,000 = 11-ZA0!

27.D
28.
2A12 GP% (50,760

(120,000

45o/o

,200))

533,000
269,500

Total COS (70k + 555k + 3k - 95k)

Less: Cost of regular sales (358k x70%)

263J0!

Cost of instalment sales

201.3 GP% (425,000

263,500)

38%

425,OOO

Regular sales (385,000 x 30%)

115,500
85,500
44,010

-lotal

245p10

2012 lS [(120,000 -7,20O) * 15,000] x45%

2013 lS (425,000 - 200,000) x38%
RGP

29 . 26,25A + 562,500

27 ,SAC ='

30. lnstalment sales [(192k

56-125Q

67%\ x 1.67] + 360k

END

840.000