UN, HN UF \ Gr December 30 the branch offce rated caah of PS00.000, which was received bythe home ofice In, January, 2018 4 On December 31 the branch office erroneously recorded the December allocated expenses from the home office a8 P50,000 instead of P150 000, 5 On December 31 the home office shipped merchandise billed at P300,000 to the branch office which was, received im January, 2015 5 The entire opening inventory of the branch office had been purchased from the home office Home office 2015 shipments to the branch office were purchased by ihe home office in 2015. The physical nventones at December 31. 2015 exclusing the shipmentin transl, are ore office = PS $00,000 (at cost) Branch off outside vendors ) 7. The nome office consistently bils shipments to the branch office at 20% above cost The sales account Credited for he invorce price How much is the correct ending inventory of Microsoft Company? 31, 2015, forthe MicrosaR Company and its Davao ably te Ret 23 the branch office manager purchased P400,000 of furniture and fixtures but faled to Wy ine Nome offce The bookkeeper, Knowing thal al fwed assets are carried on the home offce Feeatged the proper entry on the branch office records. iis the companys policy Nl to take any 2,009,000 (compnsed of P1,800,000 from home office ana P200.000 © P7.280,c00 ©. P3,300,000 1D P2,240,000 © 32,200,000 B. P49,750,000 A. P7.500,000 B 7.200.000 C.P7.450.000 38, How much is the adjusted balance of reciprocal account before net income of branch? ‘A. P1,100,000 8. P1,900,000 C_P800,000 39 How much is the correct net income of the branch? A P2.200.00% 8 P2.100,000 ©. P2,340,000 40. How much is the correct cost of sales of the Microsoft Company? A P36 650.000 B P25 960,000 32,900.00 41. How much is the correct sales of Microsoft Company? ‘A, P53,500,000 2. 49,000,000, ©, P48,700,000 aoCROACE/AFAR: PREWTER QUIZZER (MAY 2010 HATCH) Questions 42 ad 42 are baKed on ine following Dy ely Tha PAGE 10 to trancn wt 125 ice ohipa merchandan Wome Orcs. rencn onc btn) Sales (2.000.000) (1,600,000) 4 Shipments obranen «ono oe) 7 Puerco 1400000 Sniments hom Rome oftce 4200000 Inventory, January 1, 2015 320,000 120,000 Uneatces rot branch ventory eceono) Exporsee, 40.000 240.000 Closing mventres st December 39.2019 are Home ofice.P240.000 Branch, P200,000 (KB) a om n 42 Determine the adjustment to net come of ine branch we at 3" P2a0'000 ° Pave 000 p224000 @. Pan.ood 43 Determine the combined netncome ete home ofce and tranch 31308000 io" Pea9 000 Paes 000 © P1 080.000 44 The folowing information came from the books and records of IBM Corporation and its branch The balances are 3 of December 31, 2015, the second year of the corporation's exstence Home office Dr. (Cr. Sates Expenses Shipments to braneh (300.000) Unrealized profitin branch inventory - (65,000), Branch Or. (Cr, (800,000) 275,000 The branch purchases all ofits merchandise from the home office. The home olfice ships this merchandise at 120 percent of ts cost The ending inventory of the branch 1s P0,000 at the There are no shipments in transit between tne home office and the branch The effect of te above information will be ‘A. The total realized profit in branch inventory willbe P6S,00 B The net income reported by the branch is understated by PSS,000/” & The correct beginning ventory of tne branch is P0000 D The correct net mcome of the branch is P195.000 ex 45 Beginning Work in Process (75% complete) 28,000 units Material Started 180,000 units Conversion Ending Work in Process . Current Costs (60% complete) 32.000 units Material Abnormal spoilage 5,000 units Conversion Normal spoilage 10,000 units (continuous) Transferred out 132,000 units, All materials are added at the start of production Using weighted average, what are equivalent units for material? A. 164,000 8 179,000 169,000 46. MANGO Company has the following information for July Units started 200.000 units Beginning Work in Process: (35% complete) 40,000. units Normal spoilage (discrete) 7,000 units » Abnormal spoilage 10,000. units Ending Work in Process. (70% complete) 29,000. units Transferred out 194,000. units Beginning Work in Process Costs: Material P 30,000 Conversion 20,000 13 price The following information 1s available for Mark & Spencer Company for the current year Coss of Beginning Work in Process P 50200 100,000 240,000 600,000 D. 140,000 All materials are added ‘tthe start of the production process. MANGO Company inspects goods at 75 percent ‘completion as to conversion, . A. 217,800 8. 207,800 217,300 ‘What are equivalent units of production for conversion costs, assurting FIFO? ©. 213,050(ACACGAFAR: PREWUR QUIZZLH (MAY 2016 BATU & NLIZZUR (WAY 2016 BATU Y's cost Of giants si reas 90 Beret Mand ee sat Mach 2014 we 345,060, arch 2 work nes were Rr cost Cther ntrmananete acres inventory Manulacuring Orthod aie wae So Gara of ie WJ the company’s Inventors and produc ten forthe marth of March as 0000s Begining invari, Mach mater Work in process, Mey punished one fie ‘urchases of raw material during March st End: ng lwentories, March 31: nae ae 0 materal Work In process ae Finished goo ee Is direct labor cost? ae 00 ». 0,000 34,000 «. 724,000 48, The estimated unt costs for CO un ost for COLT Comp, when Ris operat an a vats, ave Se ee T Corp., when it is operating at 2 production and sales level of 12,000 vats, Estimated ‘Cost Item Unit Cost Direct materals P2 Direct ber 10 Vaile factory overneed 5 Fined factory overiead 6 Vanabie marketing 3 Feed marketing 5 Compute the total con tat woul be incurred during 2 month wth 2 produeton level of 1,500 unts and @ soles level of 8,500 uns 2. 600,500 b, F513.000 «. 816,000 4. 852,000 in 2017 and had the following selected account balances viene bepinning and end of 2017: Finished goods January 1, P56,000; Work in process January 1, P2400; aa esyna 1 p54 000; Finished goods December 31, P90,000; Work in process December 34, 28,000; Matena's Gecember 31, P48,000. The total cost of goods sold and actual factory overhead during the year are 280,000 and P70,000, respectively. 49, Waltermart Company incurred P80,000 direct labor cost ing the year. ‘c, P148,000 4. P144,000 Determine the total material purchases d a. P182,000) '. 162,000 50, The Brazil Corp. provides the following data for 2017. Dec 21,2018 Deo 91,2017 Inventones: Raw materigis * P 12,000 P 13,500 Work in process 45,100 17.609 Finished goods 19,500 21,200 Operating data Cost of goods manufactured 151,700 Direct labor cost 0,000, Factory overhead cost (utities only) 62,500 5.000 Indirect matenals cost * Consisting of both direct and indirect materials. ‘The cost of materials purchases for 2017, a, 43,200 b. P3e,200 & P36,700 4. P33,200 51, Side A Company applies overhead using direct labor cost. The folowing T-accounts pertain 1 2018 operations: Factory Overhead ‘Work in Process (a). 1,000 7,000 | 6.000 () 5.000 | 12,000 (©) 2,000 (3) 2 (e) i Beginning balance. Direct materials Direct labor. Factory overhead; Ending balance Sa9e0PAGE 12 a "RUACE/AFAR: PREWEEK QUIZZER (MAY 2016 BATCH) Compute the overhead rate that wns used for 2018 21% nas 13% © 300% a3 2016 was P34 800 March 31 work In procags riventory wae 50 percent af anwet labor 52 Sugar Ray Company's cont of goods wold for Mi ing Uveiiand applied 90 percent of Maret | wark in proce snvantory cost Other snforination par th cn 8 98 font 0 fe on for thw month of Mich 8 Beginning nvenones, Mach aw material P 1.700 Work n proces 4.000 Finushed goods 10200 Purchases of raw material during March 11,300 Ending inventones, March 31 2,600 Raw material Work in process 2 Finished goods How much is direct iaoor cost? , ‘8 P 16,000 . 8,000 © P3440 4. P24,000 153. The estimated unit costs for Black Sabbath Inc., whan it 18 Operating at @ production and sales level of 1,200 Units, are as follows, Estimated Cost te Unit Cost Direct materals P32 Direct labor 10 \Vanable factory overhead 15 Fixed factory overhead 6 Veariabie marketing 3] 5 Fixed marketing ith a production level of 1,160 units and a sales Compute the total cost that would be incurred during a month wi level of 950 units a P8O,500 b. 87,300 © P81,600 had the following selected account balances at 54, Moffats Company incurred P8,000 direct labor cost in 2015 and the beginning and end of 2016 Finished goods January 1. P5,600, Work in process January 1. P2400, Materials January 1, P3,400; Finished goods December 31, P9,000, Work in process December 31, P2.600. Materials December 31, 4,800 The tolal cost of goods sold and actual factory overhead during the year are 28,000 and P7,000, respectively. 4. P85.200 Determine the total material purchases during the year a P18,200 b. P16,200 © P14,800 6. 14,400 Questions $5 through 58 are based on the following: ‘Jean Smith knows the Following about the production process in ner plant Prime costs are 40 percent of total manufacturing costs, Department 1 Direct labor 1s 25 percent cf factory overnead costs. Factory overhead 1s P600,000. 55. Find the total direct material costs a 400,000» 250,000 ©. P150,000 © 1,000,000 56. Find the direct labor costs ‘2. P226,000 ». P150,000 ©. P450,000 . 300,000 57. Find the cost of goods manufactured. a, P160,000 b. P180,000 c. P140,000 . 200,000 58. The following data are available about the 8 Company 2015 Balances 2016 Balances 2017 Balances Beginning materials inventory 100.000 2 120,000 Ending materials inventory 150,000 2 110,000 Beginning work in process inventory 300,000 2 180,000 Ending work in process inventory 240,000 a 210,000 Direct labor P 200,000 zl j ‘Manufacturing overhead 400,000 Materials purchases 300,000 Find the cost of goods manufactured in 2016. b. P930,000 990,000 4. 989,000 ‘a, P900,000(CRC-ACE/AFAR: ‘AR: PREWEEK QUIZZER (MAY 2016 BATCH) Questions 59 and 60 are b; Uniab Pharmaceute al Bearing oF me ea SoPENY Manuacies a abet for atrgysuteers Al ngredents ara added al he Coating a cre Sensing Operaton Conversion costs fow unfomly thoughout ino process Ta0Uatrg and oes steam from Blending, information on the Blanding Operation for October a8 PAGE 13. 14 on the following: Work In Process - Blending Operations October 1. balanes (100,00 units 0% complete for conversion cosls) 151,760 Direct materials ad Deect 24804 (.00,600 unt) 310,000 Factory overhead (applied at 180% Of deat abor cost 399,000 October 31, balance (200,000 units, an ~ if 70% complete for conversion costs) ‘conversion costs)? ‘The October 1 balance consists of the folowing cost elements: Completed and transferred to Tabulating: Units -7 Costs - 7 Direct materials 128,000 Direct labor 8,800 Factory overhead 18,960 Total costs Bistze0 59. Using the FIFO method, compute the cost of completed and transferred to Tabulating operation. a. P4,729,520 . 2,077,760 fe. P1,730,250 4. P1,926,000 60. Using the average method, compute the cost of completed and transferred to Tabulation operation a. P1,729.520 b. 2,077,760 . 1,730,250 4d. P1,926,000 Questions 61 and 62 are based on the following: ube Products Company produces Dalandan fruit drink, The units and equivalent units (in ers), as well as unit costs, for the Initial Mix Department are as folowing Materials Conversion Equivaient units in beginning work in process 6,000 1,200 Unis started and completed 49,000 40,000 Equivalent units in ending work in process. 3.000 1,800 Unit costs 6.50 10.50 61. Assuming the company uses the FIFO method. if the beginning work in process inventory was valued at P126,000, what would be the cost of goods completed? a. P770,000 b. P896,000 ©. P644,000 4, P857,600 62, Assuming the company uses the weighted average method. If the beginning work in process inventory was (oued at P126,000, what would be the cost of ending work in process inventory? a. 19,500 b. 18,900 c. P38,400 d. 51,600 Questions 63 and 64 are based on the following: ction 62 a say manufectutes topofthesine ie skates Ina fve-production-department process, Department Soe ening work in process inventory and transferred in 18,000 units from Department 2, each with an ane re Pearcout of P12.60, Withn Deperiment 3, unk costs fr direct materials, ctect labor, and factory count pled) were P6.00, PS.75, and Pd 00, respectively. Direct materials in Department 3 are added at oe eer iDepartment 3 has 4,600 unis in ending work Process inventory which are 65% complete as to conversion costs, re removed from Department 3 at Unilever's inspection point where conversion costs, 63. If 620 spoiled units wer ‘at was the total spoilage cost, assuming spoilage is handled as a separate element of were 45% complete, whi cost? a. 78,796.25 b, P11,325.25 c. P13,818.25 4. 716,546.25 54, At Unilever's Department 3 inspection point, which is located hallway through Department 2's conversion process, 1200 spoled units were removed from production, Normal spoilage was 800 units I total spovege eet was P32,860, how much of that amount should be allocated to ending inventory? a. PO b. P5,821 ©. P7.320 d. P8,760 65. The following information pertains to Portsmouth Glass Works for 2014. ‘Budgeted directlabor cost: 75,000 hours at P16 per hour ‘Actual direct-laber cost: 80,000 hours at P17.60 per hour Budgeted manufacturing overhead: PS97.500 ‘Actual manufacturing overhead: Depreciation 240,000 Property taxes, 12,000CRCACE/AFAR: PREWEEK QUIZZER (MAY 2016 BATCH). Indirect labor 82,000 ‘Supervisory salaries 200,000 Unites: ‘59,000 Insurance 30,000 Rental of space 300,000 Indirect material see data below) 79,000 Indirect material Beginning inventory, 1/1/2014 48,000 Purchases dunng the 2014 194,000 63,000 Ending inventory, 12/31/2014 Compute the overapplied or underappiied overhead for 2014 2. 62,000 overapplied cPG6,643 75 overapplied bP62,000 underapplied i. P65,043.75 underapplied 66. Sony Company produces CB stereos for crs. The flowing cost information fs avaiable forthe period ended December 31, 2014 ‘Materials put info production: P1,200,000, of whicn P400,000 was for direct materials, Factory labor costs forthe period: P00, C00, of which P250,000 was fr indirect labor Factory overhead costs for utes: P400,000. ‘Selling, general, and administrative expenses: PEOO,000. : Compute the factory overhead cost a. 400,000 ’b. P1,700,000 «. P1,000,000 4, P1,050,000 67, PNB Bank as two service departments, tne Personnel Department and the Computing Deparment Te bank PN an at i rents ina Srecly senvce customers, the Deposit Deparment and the Loan Department ‘The usage of the two service departments’ output in 2014 is 28 follows Provider of Service User of service Personnel Computing Personnel 18% ‘Computing 10% Deposit 60% 50% Loan 40% 35% ‘The buageted cost in the two service departments in 2014 were a6 follows: Personnel - P152,000 Computing - _ P229,500 Unde iro yiect method of atocatng service department cost, the amount allocated to Deposit Department must be a. P237,000 b, P298.431 ce. P295,800 4, P191,250 Delerico Manufacturing Company makes a varity of backpacks. The activity centers and budgeted in for factory overhead for the year are Activity Center Overhead Costs Materials Handing P_ 3,000,000 68 formation Cost Driver Activity Center Rat Weight of materials 3.00 per pound Number of shapes 30.00 per shape Cutting 13,900,000 Assembly 46,000,000 Direct labor hours P120.00per labor hour Sewing 12,900,000 Machine hours 80.00 per machine hour duced in December. the EasyRider and the Ovenighter The quantities and Two styles of backpacks were p10 other operating data for the month are, EasyRider Overnighter Direct materials costs 150,000 P200,000 Direct labor cost 300,000 $0,000 Direct materials weight in pounds 50,000 19,000 Number of shapes 36,000 15,000 7,500 4,200 ‘Assembly direct labor hours Sewing machine hours 12,500 11800 5,000 1,000 Units produced Calculate the cost per unit for each backpack. a. EasyRider, P620; Overnighter, P783 b. EasyRider, P1,232; Overnighter, P1,240 ¢ EasyRider, P783, Overnighter, P20 9. EasyRider P710, Overnighter, P1,033 60 REX Corporation operates an ore processing plan. A Wypicl batch of ore runs tcugh he plant which yield FE eorpereproduats1e2d, copper. and manganese. At he spit-off pin. the intermediate products cannot be tee ert father processing, The lead {fom a typical batch wil se for °20,000 after routing additional rae casing costs of P8.000. The coppet 1s sol! for P40.000 oer adciton) prosteong, ‘costs of 1,000 The rrcnganese yield sells for P30,000 But requres adational processing cosis ‘of P6,000, Using the market value approach, the cost ratio is 80% © The joint cost allocated to copper would be: a, P44,000 > P31,200 P9600 d. P11,200ATER Fa (CRCACE/AFAR: PREWLEK QUIZZER (MAY 2016 BATCH) 70 4 Cinderella Con ni eans 8 nonconan! OWNS 85% of Under PAS 27 Consolidated statement M-current asset - A. Increase by ener ae a vP 160.000 Increases S00 Reduce by P 20.000 Reduce by P 20,000 Increase by P 150,000 Reduce by P 13,000 Reduce by P 20,000 Increase by P 150,000 71. Shell owns 75% of to Shell a noncurrer its carrying amour has been dratied PAGE 15, tat Nd separate financi mn state cial statements, what adjustments should be m: ent of nancial postion gine stamens. what adjustments should be made to the HL ER hed) 2) the Petron Company. On December 31, 2015, the last of the accounting period, Petron sold nt asset for P 100,000. The asset's orginal cost was P 250,000 and on December 21, 2015 nt in Petron’s books was P 80,000. The groups’ consolidated statement of financial positon without any adjustment in relation to tis non-current asset Under PAS 27 Consolidated and separate financial statements, what adjustments should be made to the 'sclidated statement of financial position figuras for retained earnings and ron-convolling interest? Retained Earnings ‘A. Increase by P 112.500 B. Increase by P 150.000 ©. Reduce by P 15,000 1D. Reduce by P 20,000 Non-contralling interest Increase by P 37,500 No change Reduce by P5000 IC, No change Ue 72. The Spotify Company owns 65% of the Moon Records Company. On December 31, 2015, the last day of the accounting period, Spotify sold to Moon Records a noncurrent asset for P500. The asset's original cost was P 41,250 and on December 31, 2015 its carrying amount in Spotify books was P 400. The group's consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. Under PAS 27 consolidated and separate financial statements, what adjustments should be made to the consolidated statement of financial position figures for non-cursent assets and non-controling interest? Non-current assets ‘A. Increase by P 750 B. Reduce by P 100 ©. Reduce by P 100 D. Increase by P 750 ‘Non-controliing interest Increase by P 262.50, No change Reduce by P 35, No change 73. Prada Corporation purchased 95 percent of the shares of Silicon Company on January 2012. On that date, the ook value of Siicon’s net assets approximated fair value. As a result of the purchase, Prada recognized 600,000 goodwil, During 2012, Silicon sold inventory to Prada. On December 31, 2012, Silicon had unrealized profits on its books. fof P 100,000 By December 31, 2013, all of the inventory left on Prada’s books had been sold to outside parties. During 2013, Prada sold inventory t0 Silicon and had P 150,000 of unrealized profits left on its books at the end of 2013. For 2013, Prada reported operating income of P 5,000,000, and Silicon reported net income of P 3,600,000 ‘What is the consolidated income attributable to shareholders of parent for 20137 A. 8.550,000 B. 8,330,000 C. 8,330,500 D. 8,365,000 74. §. Inc, an 80 percent owned subsidiary of P, Inc., began operations on January 1, 2009. The following information is from the condensed 2009 income statements of P and S: Sales to S Sales to others. Cost of goods sole: ‘Acquired from P ‘Acquired from others Gross profit Depreciation Other expenses Income from operations Gain on sale of equipment from S Income before income taxes Additional information: P, Inc. 5S, Ine. 100,000 490.000 P-300.000 500,000 300.000 20,000 a gh 350.000 190.000 Oe 150,000 30,000 ) 40,000 10,000 5 89.000 15.000 so Spee. 3,000 a we 412.000 e\ aN Erezon = 25000 bay + Sales by P to S are made on the same torms as those made to third parties. + Equipment purchased by S from P for P36,000 on January 1, 2009, is depreciated using the, straight- line method over four years.CRCACE/AFAR: PREWEEK QUIZZER (MAY 2016 BATCH) PAGE 16 Determine consolidated net ncome for the 8 forthe yaar 2008 atrbutale 1 the ower oft 3""b02,000 ® PS1,000, ce Pa7000 "5 Sos meant 75 Cater Ine is 9 90% ovnes subs owned subsidiary of Pelion Corp. Summarized income sa companies forthe year ended December 31.2013 flow, ened income statements for tne otated 7 Petion Cater “ sone 1500.00” ps90.000 ee Cost ot ses (780.000, (200000) Seeragexvenses ( $50.00) ¢ 200000) perating income P 20000 ‘100,000 Diuend income 90000 * itincome 210000 © e100.000 Some BA ung :nereny 12808 220000 160,000 7 ay |uRs Durng 2013 Petion sold merchandise fo Cote for 8200000, and Cate sala Fron! mercnandes for P30.000 The veginnnig mveniary of Petron were all aequred Irom aulide vendors. wie Te begining rventory of Calter contamed 30,000 of goods aqured Tom Pevon. Twenty percent (20%) ofthe curen Ye0r's mlercompany sales remamned in the respecive endng niventoves of ine afiated compares. Petron and Caltex nave uniform margin onal its sales Calculate ne consaidated cost of goods Sold for 2913 aed ‘A. P665,000, 680,000 8. 533,600 D. 695,000 maint ions 77 and 78 are based on the following information: BS Company acquired 60 percent of GMA Company for P 150,000 when GMA’s book value was P 200,000 Tre newly comprised 40 percent non-controling interest had an assessed fair vaiue of P $0,000. Also at the Gate of acquisition, GMA had a trademark (wih a 10-year Ife) that was undervalued in the financial records by P 30.000 Also, patented technology (with 2 5-yr fe) was undervalued by P 20,000 Two years later, the following figures are eported by these two companies (stockhoiders’ equity accounts have been omitted) Ques ‘ASS Company GMACGompeny GMA Company Sonvaue’ = Boorvoue” “rarveve” Current sssets Psto.000 Pisooo = preoenn | Lapel Trademarks 330.000 100:000 140.000 Patented Technology 205,000 75.000 75000 Cabunes (335.000) (90,000) (60.000) Revenues (459,000) (200,000) a, Expenses 250,000 150,000 ny Investment income Not gwen cH 76 What is the consoidaled net income prior to the reduction for the non-contoling inerest’s share af the subsiiary’s come? a P 200.000 b. P.243,000 fe. P285,800 4. 20,000 77. Assuming that GMA Company has paid no dividends, what is the, non-contraling interest’s share of the subsidiary’ income? ci a, P 13,000 4 20,000 44-k 78 Earth Company owns 100 percent of the capital stock of both Mars Corporation and Venus Corporation Mars purchases merchandise inventory from Venus at 125 percent of Venus's cost During 2008, Venus sold \ inventory to Mars that it had purchased for P25.000. Mars sold ail of this merchandise to unrelated customers, for P56 892 during 2008. In preparing combined financial statements for 2008, Earth's bookkeeper disregarded b. P14,400 © P17,200 the common ownership of Mars and Venus What amount should be eliminated from cost of goods sold in the combined income statement for 2008? A. P31,250 8. P25,000 C. 56,892 D. P6,250 percent of Local Company's voting shares of stock in 2014. During 2015, Global for P15 each and sold 28,000 of them to Local for P20 each. Local sold all of to December 31, 2015, for P30 each Both companies use perpetual ting entry is needed in preparing consolidated financial statements 79. Global Corporation acquired 85 purchased 50,000 picture lubes the ums 0 unrelated entities prior inventory systems. Which workpaper eliminal for 2018 to remove all effects of the intercompany sale? 9 S88 tof Goods Sold ae 560,000 no Cost of Goods Sold ss9.00 650,000 & Coste Goods Sal 60000 ag d Cost of Goods Sold 650,000 toca . Sales80 Senior Inc_owns 85 percent of Junior ine Juno" Junor 8014 al! of these eayusted? 2 No adjustment necessary D__Saies and cost of goods sold should be reduced by 85 percent ofthe intercompany by 85 percent ofthe gioss profit on intercompany company sales. ¢ Net income should be reduces a Sales and cost of goods sols should be reduced by the CRCACE/AFAR: PREWEEK QUIZZER (MAY 2010 BATCH) PAGE AT During 2015, Senior sold goods with a 26 parcant gies pref to Hee wat 0 Parent Comoration own 90 percent of Subsid f ent of Subst + Company's stack anf 78 ercanrs tek Bunng ord Foran sot ven ichoaed Sete Tor P80 Subary 99098 In 2018, How should 2015 consolkduted income sUalernon! sama ce, (OH beng td (cont of Subsidiary 2 60.000 SuDsidiary 1 then sold the invent 9 Old the inventory at its cost of 60,000 to Subsidiary 2 Prot to December 31 2015, Subsdiaty 2 sold P45,000 of inventory to a nonatfilate for P67,000 and held P15,000 in inventory at Based on the information given above, what amount should be reported in tne 2018 consolidated income .P45,000 8 (A Decemeer 31.2015, we 4s Tg, __Slatement as costo goous soe? apa. 000 © P12,000 e, censoideted balance sheet af inventory? A 36,000 3: 12,000 83, statement for 20157 ‘4P117,000 8. P120,000 co balance sheet for 2015? ‘A. P2,400, B. 9,000 ©. P48,000 .P1s,000 Cc. 150,000 cc. P12,000 Questions 85 and 86 are based on then following information: The following are the baiance sheets of Entity A and Entity B as of June 30, 2013, be? 85 87, Current assets Non-current assets Totals Capital stock 100 shares 60 shares Retained earnings Current labilties Non-current liabilities Totals EntiyA — Entiy B P 500 P 700 1,300 3,000 1,800 _P 3,700 Based on the information given above, what amount should be reported Ir, the December 31, 2015, ©. P28,000 Based on the information given atove, what amount of sales must be eliminated from the consolidated income D. P 128,000 Based on the information given above, what amount of inventory must be eliminated from the consolidated D. P 3,000 (300 fe P 600 0 1400 33 33800 y ta ato 190 2S P 1,880 P 3,700 ye uA wa ae Ac Cn Juy1, 2013, A acquee al ne issued snares of 8, guing in excnbngsrS A shares foreach ornary share of B in order for 8 to obtain a public listing The fair value of each ordinary share of B at July 1, 2013 is P40, while the quoted market price of A's ordinary shares is P16. ‘The fair values of A's identifiable net assets at acquisition date are the same as their carrying amounts, except for noncurrent assets whose fair value was P1,500. On the other hand, the fair values of the net assets of B are approximately their carrying amounts. Calculate the total assets in the consolidated balance sheet at July 1, 2013 A. P5,700 C.P8,100 B. P6,000 DP 7.660 Calculate the stockholders’ equity in the consolidated balance sheet at July 1, 2013 AP 800 C. 3,600 BP 1,400 D. P3,000 BDO Corporation purchased a 10% interest in MBTC Company on January 1, 2010 as an available-for-sale * investment for a price of P120,000, On January 1, 2016, BDO Corporation purchases 7.000 additional shares of MBTC Company from existing stockholders for P945,000 This purchase increasad BDO interest to 70%. MBTC Company had the following statement of financial position just prior to BDO second purchase. 4ERC-ACE/ATAR: PREWEER QUIZZER (MAY 2016 GATCH) Ace 18 apiites and Equity Assets Current ansets 495.000 Lunines 195 coo Busing net) 420.900 Common stock, £30 par 300.000 | Equipment net) 320.002 Retained earnings 70.009 Total asses 215.000 Total tabiines and eauty 4.215.000 | On me date of the second purchase. BDO determines that the equity of MBTC was understated by P150,000 and had a S-years cemaming ile All other book values approximate fair valves Any remamnng excess * aitebuted to googwit ‘On January 1, 2016 consolidated statement of financial position, what is the amount of goodwill o be reported? A 180.000 8 45.000 © 75.000 ©. 120,000 gf 88 CALGARY had a receivable from a foreign customer that is payable in the customer's focal currency On me December 31, 2014, CALGARY correctly included this recewabie for 200,000 local currency units (LOU) wn ts WEN gj Balance sheet at P' 110.000 When CALGARY collecied the receivable on February 15.2015, the Philippine “antl eso equivalent was P 95,000. In CALGARY 's 2015 consolidated income statement, how much should it report G0 as a forego exchange loss? a PO bP 10,000 © P 15,000 4 P2900 89. Jolly Foods Company, a local company, bought furniture from Ailments Corporation. a US company, for 39,000 US Dollars in 2014, Pertinent exchange rates relating to this transaction are as follows, Buying Rate Seling Rate Receipt of order P4710 P4720, Date of shipment 4725 47.45 Balance sheet date 49.50, 4960 Settlement date 49.45 49.50 ‘What is the foreign exchange gain or loss of Jolly Foods Company for 20147 A. P78,750 loss © P 78,750 gain B -P75.250 loss D. P75,250 gain Questions 90 through 92 are based on the following: ‘Alaska, Inc has several transactions with fore.gn entities. Each transaction is denominated in the local currency unit (LCU) of the country in which the foreign entity is located Transaction 1 On November 12, 2015, Alaska, Inc purchased goods from a foreign company at a price of LCU 40,000 when the direct exchange rate was 1 LCU = P4 66. The account has not been settled as of December 31, 2015, when the exchange rate has decreased to 1 LCU = P5.15, Transaction 2 On November 28. 2015. Alaska, Inc sold goods to a foreign entity at a price of LCU 20,000 when the direct exchange rate was | LCU = P2456. The account has not been settled as of December 31, 2016, when the exchange rate has increased to 1 LCU = P23 48 Transaction 3 On December 2, 2018, Alaska, Inc purchased goods from a foreign company at a price of LCU 30,000 when the direct exchange rate was 1 LCU = P461 The account has not been settied as of December 31, 2015, when the exchange rate has increased to 1 LCU = Pé 55. Transaction 4 On December 12, 2015. Alaska, Inc sold goods to a foreign entity at a price of LCU 2,500,000 when the direct exchange rate was 1 LCU = P1 15. The account nas not been settled as of December 31 124 2015, when the exchange rate has decreasea to 1LCU Determine the December 31, 2075, year-end balance of accounts receivable a P338,700 b. P342,500 ¢ P3,366,200 4. P3,569,600 91. Determine the December 31, 2015, year-end balance of accounts payable, a P338,700 'b. P342,500 ©. P3,366.200 4d. 3,569,600 Determine the net gain or loss from foreign currency fluctuation to be reported in the income statement of 2015, a a. P33,200 b. 232,800 . 199,600 4. P266,000 90. 9284 On June 18, CITIBANK C . oxporaion entered into a frm commitment to purchase spe HSBC Tratng Company fr YE0.000.000 on Avgut 20. The exchange ae or ‘educe the exchange rte at cou nereas he cos of te aunt in pote, for @ call option contrac. This contact gives CITIBANK the option to purchase 80,000,000 95, Prince had the following information: 96. On December 1, 2016, Puregold ent 7. CRCACE/AFAR: PREWEEK QUIZZER (MAY 2016 BATCH) PAGE 99 CRC Company. isa . company. ough uur fom ACE Coro 2018 Perinat evchange ae rey win tnsarion areas lone ne” Taunus Oot Suing Rate ‘Seling Rate Recap of order Pea Ponto. Date of shipment 3450 94.90 Balance sheet date 99.00 99.20 Settlement date 98.90 89.00 What ste foreign exchange gain or oss of CRC Company for 2015? 157,500 loss, ©. P 187,500 gain D. 150.600 les B. 180.000 gam fl cialized equipment from the ine 18 Is Y100 = Pt. To ITIBANK pays P'12,000 ‘atan exchange rale of Y100 = P1 on August 20. On August 20, the exchange rate if Y93 = PI. How much did CITIBANK save by purchasing the call option? A. P12,000 8. 48215 ©. 60.215 ._CITIBANK would have been better off not to have purchase the call option * Purchased merchandises from a foreign sui ‘of P60,000 and paid tne invoice on April 20, = On September 1, 2016, borrowed the peso equivalent of the principal In Prince's 2016 Income stater A. 4,000 B 20,000 C. 22,000 ©. 28,000 speculative purposes, Puregold fiscal Date Spot rate December 1,2016 P4500 45.50 December 31,2016 46.00 46.50 January 30,2016 45.60 45.30 45.10 March 31, 2016 plier on January 20, 20%6 for ‘2016 at the Philippine peso equivalent Philippines peso is payable in the lender's local currency on September 3} amount was P220,000. lered into @ 120-day forward contract to pt year ends on December 31, The exchange rates are 2s folows: the Philippine peso equivalent ‘of P68,000 ‘equivalent of P300,000 evidence by 2 note that 4. 2016. On December 31, 2016, the Philippine ment, what amount should be included as a foreign exchange loss? wurchase 260,000 US dollars for Forward rate (3/81/10) ‘ain or loss to be reported from this forward contract in 2016? How much isthe forex 95 ‘A. 250,000 8, P350,000 ©. P300,000 D. P225,000 AMEX Corp sold handicrats goods toa US fim for $100,000 in 2018. Pertinent information on exchenge rate follows: Buying Seling Sept 4 Receipts of order 45.80 46.00 Oct. 15 Date of Shipment 47.00 48.00 Dec. 13, Date of balance sheet 47.20 48.50 Jan. 6 2016 Date of settlement 46.00 47.00 ‘The sale would appropriately recorded at ‘A: 4,700,000 | @. 4,600,000 D. 4,800,000 B. 4,580,000PAGE 20 CRCACE/AFAR: PREWEEK QUIZZER (MAY 2016 BATCH) 98. On 1 March 2016 entities SME A and SME B each acquired 30 per cent of the ordinary shares that carry voting Fights at 3 general mesiing of shareholders of entily Z for P300,000. Entites A and & immediately agreed 10 shared coniro! over entity 2. On 31 December 2016 ently Z declared a dividend of P100,000 for the year 2016. Entity Z reported a proft of P80,000 for the year ended 31, December 2016. At 31, December 2016 the recoverable amount of each venture's investment in entity Z is P290,000 (calculation: fair value P293,000 less Costs to sell P3,000). Assuming thal entity Z earned its prof} evenly through the year, under Cost Method There 18 no published price quotation for ently Z. How much will be recognized in profit (oss) by each venture as a result of the investment? ‘A. 30,000 . 20,000, 8 16.667 ©. 38,333, 99. The following information were taken from the statement of realization and liquidation of CDE Company in Receivership for the month ended December 31, 2015: Assets Liablities ‘Assets to be realized 1,900,000 Liabilities to be liquidated 1,300,000 Assets acquired 100,000 Liabilities assumed 30,000 Assets realized 600,000 Liabiltos liquidated 700,000 Assets not realized 840,000 Liabilities not iquidated -—* 637,000 Profit and Loss: Supplementary charges 180,000 Supplementary credits 603,000 How much is the proft or oss for the month of December 2015. a, P144,000 profit . P144,000 loss © P423,000 profit dP 423,000 loss 100. The following data were taken from the statement of affairs for Austria Corp ‘Assets Pledged for ful secured labilties (fair value P 300,000) 360,000 ‘Assets pledged for partially secured liabilities (far values, P 208,000) 296.000 Free Assets (fair value, 160,000) 280,000 Unsecured liabilities with priorty 28,000 Fully Secured labilties 120,000 Partially secured labilties 240,000 460,000 Unsecured liabilities without priority The total estimated deficiency to unsecured creditors and the expected recovery per peso of unsecured claims, 2 152,000and 1.38 © 180,000 and 1.30 b. 180,000 and 1.26 4,148,000 and 1.36 101. MFT and JGS formed a joint venture on January 1, 2016 to operate two stores to be managed by each venturers/participants. They agreed to contribute cash as follows. MET P 30,000 uss 20,000 Profits and lasses are to be divided in the capital ratio All venture transactions are for cash Cash receipts and disbursements of the business during the 4-morih penod Nandled through the pamtcipant’siventurer's bank accounts are as follows MET Jes Receipts P 78,920 P 65,425 Disbursements 62,275 70,695, (On April 30, the remaining non-cash venture assets in the hands of the participants/venturers were sold for P 60.000. The venture is terminated and seltiement is made between MFT and JGS. ‘The P 60,000 is divided between the paricipants/venturers as follows: a. MET, P 16,180, JGS, P 43.820 c. MFT, P-26,180; JGS, P 33,820 b. MFT, P21,905, JGS, P 38,095 d. MPT, P 48,095; JGS, P 11.905 102. A nonprofit organization had the following cash contnbutions and expenditures in 2012: Unrestricted cash contributions 500,000 . Restricted cash contributions for the acquisition of property 200,000 _ Cash expenditures to acquire property 200,000 The statement of cash flows shovid include vihich ofthe following amount? ‘A. Operating P 700,000, Investing (P200,000), and Financing PO B _ Operating P 500,000, Investing PO, and Financing PO ©. * Operating P 500,000, Investing (P200 000), and Financing P 200,000. D. Operating P.O, Investing P 500,000, and Financing P 200,000CRCACE/AFAR: PREWEEK QUIZZER (MAY 2016 BATCH) PAGE 21 : 109. The statement of fhencial poston (balance shee!) Founders Library, 2 private notior-groM organza should report separate peso amounts Yor te Wrarys net assets according To wh of the leaog classifications? _ 4 Unestcles and permanenty restctea & Temporary resteted snd permanently ret & Unesteted and tomporanly resicted 5. Unestete, temporaly rented, and permanent resticted ted 104 Agency N have an obligation for the constructions of 10 storey building along J. P. Rizal upon signing of ‘contact amounting to P 100,000,000, the entry to record this transaction would be A Noentry 8. Building (DR) ‘Accounts Payable (CR) ©. Building (OR) Cash-NT, MDS (CR) D Memo entry ~ RAOCO 105. SME, 2 national government agency unit incurs an obligation for the purchase of a garbage truck for P 4,500,000 on March 15, 2011. The dump truck is to be delivered on March 31, 2011 and the motor firm has ‘agreed for a 30-day, interest free delayed payment ie, payable on April 30, 2011. Assume a 12% tax on the purchased covered by TRA, ‘On March 15, 2011, the entry to be recorded by SME willbe: A. Equipment "4,500,000, ‘Accounts payable 4,500,000, B. Equipment 4,500,000 ‘Accounts payable 3,980,000 SI from NG. '540,000 ©. Equipment 4,500,000, ‘Accounts payable 3,980,000 Due to BIR. ‘840,000 D. Memo entry in RAOCO 106, The annual appropriation (General Fund) of Sipag Government Agency for 2011 of PS,000,000 was released by DBM minus the 8% reserve on allotments. Sioag Agency incurred total obligations during the year of 'P4,000,000, of which P2.000,000 relates to procurement of equipment and the other P2,000,000 to operating expenses. Records show that by year's end, P1,250,000 of the total obligations have been liquidated. What is the appropriate entry in the books of Sipag Agency to record the incurrence of obligations? 12. Operating expenses 2,000,000 ‘©. Operating expenses P 2,000,000 Equipment 2,000,000 Equipment 2,000,000 Cash-Nalional Treasury, MOS 4,000,000 __Obiigations Incurred 4,000,000 b. Operating expenses —-P2,000,000 d, Obligations Incurred P 4,000,000 Equipment 21000,000 Cash-National Treasury, MDS 4,000,000 "Accounts Payable 4,000,000 407. Agency N have an obligation for the constructions of 10 storey building along J, P, Rizal upon signing of contact ‘amounting to P 100,000,000, the entry to record this tansaction would be: ‘A. Noenty B. Building (OR) ‘Accounts Payable (CR) ©, Building (OR) Cash-NT, MOS (CR) D. Memo entry - RAOCO [ede