Answer: 5,280

 

1. Charlie Corporaton's records for he year 200B show he following daa: Ne Sales (6,000 unis) - P21,000 Cos of goods manufacured (7,000 unis):   Variable - 9,450   Fixed - 4,725 Operatng expenses   Variable - 1,470   Fixed - 2,100 There was no nished goods invenory a he beginning of he period. Neiher was here any work-inprocess invenory a he beginning and end of he year. Charlie Corporaton's operatng gures during he year under absorpton costng were: Answer: 5,280

2.The owners of Kelsey's Daily Mar have been looking for ways o improve sales a he sore. One of he proposals is o have a weekly rae wih a oal prize of P10,000 per week. For every P50 worh of goods purchased, he cusomer shall receive a numbered tcke for he rae. The variable cos o prin and disribue he tckes has been estmaed a ve pesos (P5.00). Promotons and oher xed coss in connecton wih he rae, likewise, have been estmaed a P15,000 per week. The curren weekly operatng resuls of Kelsey are given below: Sales - P1,000,000 Variable coss - 700,000 Fixed cos for he week - 120,000 Queston: Wha is he sales revenue required o break-even wih he rae? Answer: 725,000

3. Garcia Corporaton has he following budge estmae for he year 2020: Sales - P2,800,000 Income before ax - 10% of sales Selling and adminisratve expenses - 25% of sales Conversion cos - 70% of oal manufacuring cos Invenories are budgeed as follows:

 

 

Beginning

Ending

Maerials

P176,000

P216,000

Work-in-process

200,000

240,000

Finished goods

280,000

336,000

The budgeed cos of goods sold is: Answer: 1,820,000

4. The following is a summarized income saemen of Carr Company's pro cener No. 20 for March of 2019: Conributon margin - P70,000 Period expenses:   Manager's salary - P20,000   Faciliy depreciaton - 8,000   Corporae expense allocaton - 5,000 Toal period expenses - 33,000 Segmen's pro - P37,000 Wha amoun is mos likely subjec o he conrol of he pro of cener's manager for he period? Answer:70,000

5. The Sampaguia Seam Laundry bough a laundry ruck ha can be used for 5 years. The cos of he ruck is P225,000 wih a salvage value of P35,000. Since he ruck is no working ecienly, managemen has hough of selling he ruck immediaely and buy a delivery wagon which will serve he company’s purposes purposes more properly. The estmaed ne reurns of he ruck for 5 years is P1 P150,000. 50,000. If he ruck is sold, managemen can only recover P175,000. (In all calculatons, use he srai sraigh gh line mehod of depreciaton) If he rm decides o keep he ruck, he ne gain (loss) over he 5-year period is: (If he your answer is a loss, please pu (-) before he numerical gure) Answer: -40,000

6. Efren Corporaton uses Par BIX in he assembly of a major produc line. The cos o produce one BIX is presened below: Direc maerials - P4,000

 

Maerial handling (20% of direc maerials) - 800 Direc labor - 32,000 Overhead - 48,000 Toal manufacuring coss - 84,800 Maerials handling which is no included in manufacuring overhead represens he direc variable coss of he receiving deparmen ha are applied o direc maerials and purchased componen on he basis of heir cos. The company's annual overhead budge is one-hird variable and wo-hird xed. Ten unis of BIX are expeced o be required for one monh. Zim Company oers o supply BIX a a uni prcie of P60,000. If produc BIX is purchased from Zim, he released facilites would be used o produc produc CZX CZ X and generae a pro of P208,000. The ne opporuniy cos of he beer alernatve, make or buy is: Answer: 16,000

7. The folk Company is planning o purchase a new machine, which i will depreciae on a sraigh-line basis over a en-year period wih no salvage value and a full year's depreciaton in he year of acquisiton. The new machine is expeced o produce cash ow from operatons, ne of income axes, of P66,000 a year in each of he nex en years. The accountng (book value) rae of reurn on he inital invesmen is expeced o be a 12%. How much will he new machine cos? Answer:300,000

8. Boy Casual Wear has P75,000 in a bank as of December 31, 2017. If he company plans on depositng P4,000 in he accoun a he end of each of he nex hree years (2018, 2019 and 2020) and all amouns in he accoun balance earn 8% per year, wha will he accoun balance be a December 31, 2020? Ignore he eec of income axes.  

8% Ineres Rae Facors

Period

Fuure Value of P1

Fuure value of an annuiy of P1

1

1.08

1.00

2

1.17

2.08

3

1.26

3.25

4

1.36

4.51

Answer: 107,500