a " 2 PA REVIEW SCHOOL OF THE PHILIPPINES MANILA | ADVANCED FINANCL \ " AL, ‘ First Preboara Exons ACCOUNTING ANDREBORTING Sunday, February 11, 2018 | 3:30 pam to 6:30 p.m. Numbers 1 and 2 AB ‘ . pea cond oem ABC Partnership. It was agréed that A will contribute an equipment with P1200000 0 ,000 with historical cost of P1,600,000 and accumulated depreciation of 4 lay after the partnership formation, the equipment was sold for P 600,000. i i pam Contribute a fand and building with carying amount of P2,400,000 and fair value of P3,000,000 « land and building are subject to a mortgage payable dmounting to P600,000 to be assumed by the Partnership. The partners agreed that B will have 60% capital interest in the partnership. The partners also agreed that C vll contribute sufficient cash tothe payership. 1. What is the total agreed capitalization of the ABC Partnership? A. 3,000,000 1 B. 4,000,000 ©. 5,000,000 D. 6,060,000 A. 1,090,000 B. 1,200,000 C. 1,400,000 | 2. What isthe cash to be contributed by C in the ABC Pestneship? | \ D, 1,600,000 | i Numbers 3, 4, and 5 On January 1. 2018, A, B and C formed ABC Partnérship with original capital contribution’ of 600,000, P1,000,000 and PAU0,009. As appoinced as managing pare During 2018, A, B and C made additional investmenfs of P1,000,000, P400,000 and P600,000, respectively, At the end of 2018, A, B and C made die ings of P400,000, P200,000 and P800,000, respectively. At the end of 2018 the capital tulacee of @ is reported t P640,000. The profit or loss agreement of the partners is as follows: | 10% interest on original capital contribution of the partners. Quarterly salary of P80,000 snd P20,000 for A and B, respectively. Bonus to A equivalent to 20% of Net Income after interest and salary to all partners Remainder is to be distributed equally among the partners. 3. What is the partnership profit for the year ended December 31, 20187 A. 1,809,000 B. 2,049,000 C. 2,100,000 D. 000 4. What is A’s share in partnership profit for 2018? A. 380,090 B. 680,000 €. 1,080,006 D. 400,900 ‘What is B's share in partnersnip profit for 20°87 ‘A, 400,000 B. 580,000 C. 100,000 D. 180,000Page 2 Number 6 On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets 2,000,000 Total Liabilities 1,200,000 Noncurrent Assets 4,000,000 A, Capital 1,800,000 B, Capital 1,600,000 C, Capital 1,400,000 ‘On January 1, 2019, D is admitted to the partnership by purchasing 40% of the capital interest of B at a price of P1,000,000 ‘What is the capital balance of B after the admission of D on January 1, 2019? A. 1,080,000 B. 960,000 C. 840,000 D. 600,000 Number 7 On December 31, 2018, ABC Partnership's Statement of Financial Position shows that A, B and C have capital balances of P800.000, P600,000 and P200,000 with profit or loss ratio of 1:4:5. On January 1, 2019, C retired from the partnership and received P160,000. At the time of C’s retirement, the assets and liabilities of the partnership are properly valued. What is the capital balance of B after the retirement of C? A. 568,000 B. 616,000 C. 632,000 D. 640,000 Number 8 On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets 2,600,000 Total Liabilities 600,000 Noncurrent Assets 4,000,000 A, Capital 2,800,000 B, Capital 1,400,000 C, Capital \ 1,800,000 ‘On January 1, 2019, D is admitted to the partnership by investing P2,009,000 to the partnership for 20% capital interest. ing partnership are p:operly valued, what is the capital balance of C after If the all the assets of the e the admission of D? A. 1,920,000 B. 1,800,000 C. 1,680,000 D. 2,400,000 Number 9 dissolution of a general partnership? Which of the following will not result to automatic A. Assignment of partner’s interest 10 third person : B. Death of a partner C. Insolvency of the partnership S._D. Civil interdiction of a partnerNumb er 10 Page 3 How shall the net is 7 * profit or net or industrial? loss of the partnership be divided among the partners, whether capitalist A, In accor i Ih accordance th thei capital contbuton eto i i partnership, Just and equitable sharing taking into account the circumstances of the C. Equally D. 7 "i accordance withthe partnership agreement Number 1) When i interest of gant Is admitted to an existing, partnership through the purchase of a portion of existing of incumbent partner, which of the following is correct? A. The total capital of the old and new partnership will be the same. B. The partnership will recognize gain or loss on the difference between the amount paid and capital wansferred, @ + Goodwill may be recognized by virtue of the admission D. There will be increase in the total assets of the partnership equivalent to the amount paid by the newly admitted partner, Numbers 12, 13 and 14 Bacolod Company is experiencing financial problems which resulted to ultimate bankruptcy. The statement of financial position of the entity before liquidation is presented below: Casi 200,000 Incotne tax payable 400,000 Inventory 600,000 Salaries payable 600,000 Land 400,000 Note'payable 1,600,000 . Mortgage payable 200,000 Accounts payable 800,000 Contnbuted capital 1,000,000 Deficit (3,400,000) © The note payable is secured by the inventory with net realizable value of P500,000. © The mortgage payable is secured by the land with fair value of P240,000. 12. What is the amount received by the holder of the note payable at the end of corporate liquidation? A. 640,000 B. 600,000 ; . 500,000 D. 520,000 13. What is the amount received by the holder of the mortgage payable at the end of corporate liquidation? ‘A. 240,000 B. 400,000 C. 300,000 D. 200,000 14. What is the amount received by the employees at the end of corporate liquidation concerning their salaries? A. 200,000 B, 240,000 . C. 144,000 D. 600,000Page 4 Number 15 In every corporate liquidation, which of the following creditors will always fully recover their claims from a liquidating corporation’? A. Unsecured creditors with rity B, Unsecured creditors without priority C. Partially secured creditors D, Fully secured creditors Number 16 It refers to the term used when the total shareholders’ equity has a negative balance. Deficit Deficiency ‘Surplus Insufficiency pom> Numbers 17 and 18 SM Company reports gross profit on the installment basis. The following data are available: 2018 2019 2020 Installment sales 480,000 500,000 600,000 Cost of goods ~ installment sales 369,000 362,500 432,000 Gross profit *120,000 137,500 168,000 - Collections 2018 instailment contracts 90,000, 150,000 145,000 2019 installment contracts 95,000 160,000 2020 instaliment contracts 125,000, Defaults Unpaid balance of 2018 installment contracts 25,000 30,000 Value assigned to repossessed merchandise 13,000 12,000 Unpaid balance of 2019 installment contracts 32,000 Value assigned to repossessed merchandise 18,000 17, What is the realized gross profit before loss on sepossession for 20207 A. 99,550 B. 115,250 Cc. 97,950 D. 113,250 18, What is the loss on repossession for 2020? A. 10,500 B. 5,200 Cc. 15,700 D. 18,0007 Number 19 ' \ ' Manila Com; | following pertinent data: | 201 2019 Installment sales 600,00 750,000 Cost of goods sold t 450,000 $70,000 Balance of Deferred Gross Profit at Year end | ! 2018 105,000 30,900 2019 | 108,000 2020 1 i \ ‘What is the total balance of the Installment Accounts Receivable on December 31, 2020? A, 540,000 ! : B. 555,000 | C. 558,000 | D. 600,000 ; Number 20 , Page 5 ybany uses the installment method of income recdgnition. The entity provided the 2020 720,000 504,000 18,000 144,000 BBB Computer Store started its operation in January 1, 2018, During the year, it hed cash sales of P1,375,000 and installment sales of P 3,300,000. BBB imposes a mark up on cost of 25% for cash sales and 50% for installment sales. During 2018, installment receivable balance amounted to 1,230,000. How much is the realized gross profit for 2018? A. 965,000 B: 660,000] C. 935,000] D. 1,100,000 Number 21 Honda, a dealer of vehicle, sales exclusively on instalment basis. One of its customers, Mr. Yu purchased a car for P1,361,250. The cost to Honda was P598,950. After making an initial payment of P181,500, Mr. Yu defaulted on subsequent payments. Honda lost no time in repossessing the car which, by this time, was appraised at a value of P397,500. Honda had to incur additional cost of repairs of P49,500 before the car was subsequently resold for P825,000 to Mr. Zi who made the initial payment of P206,250. How much is the loss on repossession on the sale? A. 99,000 B. 121,590 C. 281,160 D. 234,250 Number 22 If the sale transaction provides for periodic installments over an extended period of time and the collectability of the sales price cannot be reasonably estimated, what method of revenue recognition is the most appropriate? A. Cost recovery method B. Accrual basis C. Installment method D. Cash basisi ' Page 6 Number 23 ; Under installment method of revenue recognition of installment sales, which of the following ‘Statements is true? A. Both sales revenue and cost of sales are recognized at the point of sale. B. The related gross profit of the installments sales is deferred ta those period during which eash will be collected, C. As receivables are collected, a portion of the deferred gross profit equal to the gross profit rate times cash collected is recognized as income. | D. All of thejabove. Number 24 In installment sales, how shall the seller classify and present deferred gross profit account on Hs statement of financial position? A. Asset valuation allowance or contract-receivable account B. Uneamed revenue account C. Equity account D. Income account ‘Numbers 25, 26 and 27 (On January 1.2018, an entity granted a franchise to a franchisee. The franchise agreement required the franchisee to pay @ nonrefundable upfront fee in the amount of P800,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. The franchisee paid the nonrefundable upfront fee on January 1, 2018. In relation to the nonrefundable upfront fee, the franchise agreement required the entity to render the following performance obligations: . © To construct the franchisee’s stall with stand-alone selling price of P400,000. = To deliver 20,000 units of raw materials to the fanchisee with stand-alone selling price of P500,000| ‘* To allow'the franchisee to use the entity tradename for a period of 10 years starting January 1, 2018 with stand-alone selling price of P100,000. On June 30, 2018, the entity completed the construction of the franchisee’s stall. On December 31, 2018, the entity was able to deliver 6,000 units of raw materials to the franchisee. For the year ended December 31, 2018, the franchisee reported sales revenue amounting to P200,000 ‘The entity had determined that the performance obligations are separate and distinct from one another. 25. What is the amount of nonrefundable upfront fee to be allocated to the construction of the franchisee’s stall? A. 400,000 B. 320,000 C. 300,000 D. 240,000 26, What is the amount of revenue to be recognized in relation to the use of delivery of raw materials for the year ended December 31, 2018? A. 200,000 B. 400,000 C. 120,000 D. 150,000 27, What is the amount of revenue to be recognized in relation to the use of entity’s tradename for the year ended December 31, 2018? A. 10,000 B. 8,000 C. 100,000 D. 20,000 ~Page 7 Number 2 " 2,2 The a RIVERO Company signed an agreement to operate asa franchisee of HIGH END agreement itl franchise fee of 937,500 for 7 years. Of this amount, P187,500 was paid December 31, 2018, pisysieted ard the balance payable in three annual payments beginning on indicates that he’s ee ERO signed a non-interest bearing note for the balance. DINERO’s rating amounting to Poss eee oe MONEY at 18% forthe loan of his type, Assume that substantial services franchise cove of bo ont slteady been rendered by HIGH END Products and that additional indirect Of PL2.506 was also incurred, PY focior is 2.17, Products, when the If the collection of the A. 301,360 B. 280,060 C. 203,910 D. 289,060 Rote is uncertamn, what is \e net income for the year ended December 31, 20187 Number 29 On November 30, 2018, Loveless Company authorized NBSB Corp. to operate as a franchisee for an initial franchise fee of P1,950,000. Of tis amount, P750,000 was received upon signing the agreement and the balance, represented by a note, is due in four annual payments starting November 30, 2019. Present value of PI at 12% for ¢ periods is 0.6355. Fresent value of an ordinary annuity of Pl at 12% for 4 periods is 3.0374. The period of refund will elapsed on January 31, 2019. The franchisor has performed substantially all of the initial services but the operations of the store have yet to start Collectibility of the note is reasonably certain. : How much is the earned frenchise fee on the year ended December 31, 2018? A. 1,661,220 | B. 750,000 i . C. 911,220 D. 0 Number 30 Under IFRS 15, an entity recognizes revenue from contract with customers when or as the entity satisfies the performance obligation. Any of the following criteria is considered satisfaction by an entity of performance obligation over time, except A. ‘The customer simmuliencously receives and consumes all of the benefits provided by the entity as the entity performs { B, The entity’s performance creates or enhences an asset that the customer controls as the asset is created. C. The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. D. The emtity has already transferred the control, title, and risk/rewards of ownership of the asset to the customers upon delivery of the asset. Number 31 Under IFRS 15, how: shal! an entity recognize revenue from contracts with customers? A. An entity shall recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (ic. ax aeset) to @ customer. B. An entity shali recognize revosms wren it is probable that future economic benefits will flow to the ‘entity and it can be meesured rehsbly. C. Anentity shail recognize revenne at the time D, olisction of cash ‘An entity shall recognize cever at the time of signing of contract.Page 8 ‘Numbers 32, 33 and 34 On January 1, 2018, Liquid Company accepted a long-term construction project for an initial contract price of P2,000,000 to be completed on June 30, 2020. On January 1, 2019, the contract price was increased to P3,000,000 by reason of change in the design of the project. The outcome of the construction contract can be estimated reliably. The project was completed on December 31, 2020 which resulted to penalty amounting to 400,000. The entity provided the following data concerning the direct costs related to the said project for 208 and 2019: 2018 2019 ‘Costs during the year 880,000 1,360,000 Remaining estimated costs to complete at year-end 1,320,000 $60,000 32. What is the construction revenue for the year ended December 31, 2018? A. 680,000 B. 800,000 C. 880,000 D. 720,000 33. What is the realized gross profit for the year ended December 31, 2019? ‘A. 400,000 B. 160,000 C. 360,000 D. 200,000 34, What is the balance of construction in progress on December 31, 20197 2,400,000 2,040,000 2,240,000 1,800,000 pom> Number 35 DUENAS, Inc. works on @ PS,250,000 contract in 2018 to construct an office building. During 2018, DUENAS, Inc. uses the cost to cost method. At December 31, 2018, the balances in certain accounts were: Construction in progress — P1,890,000 ; accounts receivable — P180, 000; and billings on construction in process P900,000 ; contract retention — P90,000 ; mobilization fee ~ P70,000. At December 31, 2018, the estimated cost at completion is P3,675,000. What is the realized gross profit in 2018? A. $51,250 B, 531,250 C. 621,250 D. 567,000 ‘Number 36 i rose loss of P78,000 on its long-term project which has Batanes Construction Company recognized gross loss of P78,00 seremalated costs of P595,000. To finish the project, the company estimates that it has to incur additional cost of P820,000. What is the contract price? , A. 1,415,000 B. 1,337,000 ©. 1,493,000 WD. 3,183,000i ‘ Page 9 j Number 37, | Ivan Ine. Is gonstructing a skyscraper in the heart of Manila and has signed a fixed price two year Contract for B21,000,000 with the local authorities. It has incurrel the following cost relating to the contract by a end of first year: } | Material cost 5,000,000 | , | Labor cost | 2,000,000 | | \ Construction overhead 2,000,000 | j Marketing costs | '500,000 | | Depreciation of idie plant 500,000 | At the end of first year, it has estimated cost to complete the contract P9 million. What gross plofit or loss from the contract should Ivan recognize at the end of the first year? A. 1,500,000; i B. 1,050,000 i C. 1,000,000} | D. 1,280,000) ! Number 38 | When the outcome of a construction contract cannot be estimated reliably, what accounting method shall be used'by the long-term constructor for the recognition of construction revenue and construction cost? ! A. Percentage of completion method B. Cost recovery method C. Installment method D, Accrual basis Number 39 | How shall the long-term constructor account for change in the percentage of completion of a project? ‘A, It shall be applied and accounted for prospectively as a change in accounting estimate. B. It shall be applied and accounted for retroactively as a change in accounting policy C. Itshali be retrospectively restated as correction of prior period error. D. It shall be retrospectively adjusted in retained earnings. Number 40 ‘The home office in Makati City ships and bills merchandise to its provincial branch at cost. The branch carries its own accounts receivable and makes its own collections. The branch also pays its expenses. ‘The branch transactions for 2018 are reflected in the following information: Cash ao |; 40,000 ‘Accounts receivable | 160,000 Home Office | 360,000 Shipments from Home Office 300,000 Sales 451,000 Expenses 111,000 December 31, 2018 inventory 130,000 ‘What is the balance of the Investment in Branth account in the home office book? ‘A. 360,000 B. 390,000 . €. 330,000 ' D. 350,000Page 10 t idise to the branch totaled Cream Company decided to open a branch in Manila. Shipments of merehan Dahich "Ail accounting records are kept at the home office. | ‘Numbers 41 and 42 ntions for the year ended December | P108,000 which included a 20% markup on cost. ‘The branch submitted the following report summarizing the operat 31, 2018: i i 148,000 Sales on account ! : 44,000 i 120,000 Sales on cash basis i f aceouni r Co peso sf accounts receivable | Pe Expenses unpaid 24,000 Purchase of merchandise for cash | i Bear Inventory on hand, December 31; 80% from home office aoe Remittance to home office 41, What is the branch inventory on December 31, 2018 at cost? A. 50,000 B. 40,000 . 32,000 D. 20,000 42. What is the branch net income for the current year? A. 2,000 B. 8.000 C. 1,600 D. 1,000 Number 43, A home office transfers inventory to its branch at a 25% markup above cost during 2018, which was lower by 15% compared to the mark-up above cost last year. In 2018, the reciprocal account in the income statement of the branch amounts to P300,000. At year-end, the home office adjusted its Unrealized Profit account downward to P16,000. The cost of goods sold of the branch in its books is overstated by P 70,000, ‘How much is the ending inventory per branch books at the end of 2017? A. 91,000 B. 65,000 \ C. 80,000 D. 64,000 Number 44 ‘The home office in Mandaluyong shipped merchandise costing P21,690 to Caloocan branch and paid for the freight charges of P3,980. Caloocan Branch was subsequently instructed to transfer the merchandise to Manila Branch wherein Manila branch paid for P1,250 freight. If the shipment was made directly from Mandaluyong to Manila, the freight cost would have been P5,500. How much is the amount of Branch Current to be debited in the books of the home office as a result of the interbranch transfer of merchandise. A. 25,940 B, 26,740 . C.25,670 D. 25,490Page 11 Number 45 ‘The Thundercats hi s lead office opened its M: ancl nuary branch during the month bales eats Makati branch on January 1. Merchandise shipments to the a at 120% of cost is P6,720,000, Branch returned damaged merchandise joe On January 30, the branch reported net loss of P483,420 and an inventory of How much is the true net income (loss) ofthe branch? A. 924,000 B.- 440.580 ©. 1,407,420 D. 286,580 Number 46 In the reconciliation of the investment in branch account and home office account, which of the following reconciling items will require debit to the reciprocal account in Pasay branch’s books for adjustment? A. Goods are in transit from Home Office to Branch at the end of the year B. Collection by Home Office of Pasig branch's receivable C. Payment by Home Office of Pasay branch's payable D. Collection by Panay branch of Pasay branch’s receivable Number 47 Which of the following transactions will increase the normal balance of branch account in the home office's separate statement of financial position? A. Return of inventory from branch to home office B. Payment by the branch of home office’s liability C. Receipt by the home office of credit memo from the branch D. Collection by the home office of branch's receivaile Numbers 48 and 49 Leyte Company recently set-up its standard costs for its direct materials, The entity sets the benchmark at 3 units of dicect materials per product at a standard price of P10 per unit of direct material. During the year, the entity acquired 400 units of direct materials at a total cost of P4,800 or P12 per unit. The entity also manufactured 100 products using 250 units of direct materials. 48. What is the direct material price variance? A. 500 unfavorable B. 600 favorable C. 700 favorable D. 800 unfavorable 49. What is the direct material usage variance? A. 300 unfavorable B. 600 unfavorable C. 500 favorable D. 700 favorabletie ANY EL AAEDE 1 SY SL REELEB EY SS AIEIDE AOR | Page 12 ‘Numbers 50, 51 and 52 Davao Company employs normal costing for its production. The following data are provided during the current year: Net purchases of raw materials during the year 1,000,000 Total labor costs during the year 1,600,000 Depreciation of factory assets during the year 200,000 Utilities on the factory during the year 600,000 Beginning Ending Raw materials inventory 400,000 600,000 Work in process inventory 1,000,000 400,000 1,200,000 600,000 Finished goods inventory ‘The entity uses a single account for its direct material and indirect materials. Indirect material used is one-fourth of the total direct material used. The indirect labor cost is 1/8 of the total labor costs. ‘The overhead application rate is 80% of direct labor costs. Any over or under application of overhead is considered material 50. - What is the total manufacturing cost during the current year? A. 3,120,000 B. 3,000,000 C. 3,280,000 D. 3,480,000 51, Whats the cost of goods manufactured during the current year? 52. A. 4,080,000 B. 3,720,000 C. 3,880,000 D. 3,600,000 ‘What is the over or under application of overhead? ‘A. 120,000 over application B, 280,000 under application ; C. 80,000 under application D. 320,000 over applicationPage 13 Numbers. 53, $4 and 55 Talisay Compan; is condi i . * results to the followin se ucting & joint production at a total costs of P1,000,000. The joint production lowing inventories: Units produced alt Tab Del or uc 20,000 units Selling price at splitoff #300 10.000 ens 5,000 unit Alt and Tab are con: by-product as mate of disposal is 0.4 sidered main products while Del is considered by-product. The entity considers its tial. The by-product requires additional processing cost per unit of P1.6 and its cost 0 per unit 53. What is the value to be given to product Del? A. 50,000 B. 42,000 C. 48,000 D. 40,000 54. What is the joint cost allocated to product Alt if the entity employs physical method? A. 666,667 B. 633,333 C. 634,667 D. 640,000 55. What is the joint cost allocated to product Tab if the entity employs relative sales value method? 600,000 400,000 384,000 576,000 pomp Number 56 \ Silay Company is employing backflush costing in connection with just-in-time production process. The entity provided the following production data for the year: ‘The entity acquired direct materials during the year at a cost of P200,000 The entity reported direct labor cosi of P400,000. The actual factory overhead incurred during the year amounted to P340,000. The standard factory overheat application rate is 75% of direct labor cost The ending finished goods inventory is reported st P240,000 What is the cost of goods sold under backflush costing? A. 940,000 B. 700,000 C. 660,000 D. 600,000Page 14 Numbers 57, 58 and 59 Roces Company has a cycle of 3 days, uses a Raw and In Process Account (RIP) and charges all conversion costs to cost of goods sold. At the end of each month, all inventories are counted, conversion costs components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from Raw and in Process (RIP) Account to finished goods. The following information is provided for the month of June: Beginning Balance of RIP account, including P2,000 conversion cost 10,000 Beginning Balance of finished goods account including P12,000 conversion cost 20,000 Raw materials received on credit 800,000 Direct labor cost 600,000 Factory overhead applied 1,000,000 Ending RIP inventory per physical count, including P14,000 conversion cost 40,000 Ending finished goods inventory per physical count, including P8,000 conversion cost. ‘12,000 $7. What is the amount of conversion cost included cost of goods sold in June? A. 1,604,000 B. 1,592,000 C. 1,588,000 D. 1,600,000 58. What is the amount of direct materials backflushed from RIP to finished goods? A. 782,000 B. 808,000 C. 774,000 D. 790,000 . ; 59, What is the amount of direct materials backflushed from finished goods to cost of goods sold? » A. 790,000 B, 800,000 C. 786,000 D. 778,000| Page 15 Numbers 60/61, 62, 63 and 64 i { JPG Com cant iS employing process costing regarding its production cycle. Cor i fea gion gosts are added uniformly during the production process while direct materials are added 20% yy ee si of production process, 45% at the middle of the production process and the remainder of production process. Normal sppilage is 10% of units started during the year. | \ \ | The entity is;conducting inspection when {he production process’ is at 45% bf conversion cost. The entity provided the following production data during the year: | Beginning Work in Process Inventory 20,000 units (40% incomplete as to conversion costs) Units started during the year 80,000 units | Ending Work in Process Inventory 10,000 units (80% complete as to conversion costs) Units completed during the period 76,000 units 60. What is the abnormal spoilage in units during the year? i A. 14,000 units B. 8,000 units C. 6,090 units D. 4,000 units i 61. What is the equivalent unit of production for dicect material under average process costing? A. 85,300 units B. 82,300 units fi 7 C. 76,500 units , D. 87,500 units 62. What is the equivalent unit of production for conversion cost under average process costing? A, 89,300 units B. 90,300 units C. 86,500 units D. 92,300 units 63, What is the equivalent unit of production for direct material under FIFO tosting? A, 70,300 units B. 74,500 units C. 72,300 units D. 76,900 units 64, What is the equivalent unit of production for conversion cost under FIFO costing? A. 78,300 units | B. 82,500 units ! C. 74,900 units D. 77,300 unitsPage 16 | i Number 65 | Itis a costing system that values manufactured products with und actual material costs, actual direct labor costs arid manufacturing overhead based on a predetermined manufacturing overhead rate. A. Actual costing system B. Normal costing system C. Standard costing system D. Budgeted costing system | Number 66 If the under or over applied factory overhead is insignificant, it shall be closed 10 A. Cost of goods sold only B. Finished goods and cost of goods sold proportionately C. Work in process, finished goods and cost of goods proportionately D. Raw materials, work in process, finished goods. and cost of goods sold proportionately Number 67 In job order gosting, normal spoilage which is a characteristic of a given production cycle shall be A. Expensed as incurred B. Charged or capitalized to a specific job. C. Closed to factory overhead account. D. Debited to work in process account. Number 68 What is the $nly reason for the difference between the equivalent unit of production computed under average process costing and FIFO process costing? A. Completed portion in beginning work in process inventory B. Incomplete portion in beginning work in process inventory C. Completed portion in ending work in process inventory . Incomplete portion in ending work in process inventory Number 69 \ This method of service department costs allocation is also called sequential method that allocates the costs of some service departinents to other service departments, but once a service department's costs, have been allocated, no subsequent costs are allocated back to it. A. Direct method B, Reciprocal method : C. Step-down method D. Bottom-top method Number 70/ Under Standard Costing System, direct material price variance shall be appropriately computed using A. Actual direct materials used B. Actual direct materials purchased C. Actual direct materials wasted . D. Actual direct materials converted to work in process ENDCPAR FIRST PREBOARD MAY2018 FINANCIAL ACCOUNTING AND REPORT LA BC 15. DC DRC SOA SD AB 28 98 6B 28 3A 372A MA SLA SRA 65C 3D 10.0 17.8 28 C HA RD 5G SD SA OBC Ae me wD Dae A CB CO Be Be wc BA HD CD SD LB EO $8 Bc wa FA sc 8 eB SC, GA we 5 2B A SA AA 8B SKC RO. AUDITING THEORY Lo LD 8D sc mA wc BB SUA SD HC RE SA BA Be CC HR HD RA SSB sc nA ie ms 2b 8 A SB aA oe SA 3A 19.0% 33.A A.D me ome 6A ine op ne ee mA MA see cD A 72 wD nC CD 42D , 4.0 «56D 63D 70.0 ‘ADVANCED FINANCIAL ACCOUNTING AND REPORTING be 8A Dc DB A SA BB A 8 220 30.0 Ze wo ie aA A oe De ome HA aC A eC 8 28 A 468 5D UC 7B 5B 12C 198 6C 33. 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