SUCCEED REVIEW CENTERPRACTICAL ACCOUNTING PROBLEMS 2 Final Pre Board Examination Problem 1. On May 1, 2014, Cobb and Mott formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Cobb contributed a parcel of land that cost him P10,000. Mott contributed P40,000 cash. The land was sold for P18,000 on May 1, 2014, immediately after formation of the partnership. What amount should be recorded in Cobb’s capital account on formation of the partnership? A. 18,000 B. 17,400 C. 15,000 D. 10,000 Problem 2. Red and White formed a partnership in 2014. The partnership agreement provides for annual salary allowances of P55,000 for Red and P45,000 for White. The partners share profits equally and losses in a 60/40 ratio. The partnership had earnings of P80,000 for 2014 before any allowance to partners. What amount of these earnings should be credited to each partner’s capital account? Red White A. 40,000 40,000 B. 43,000 37,000 C. 44,000 36,000 D. 45,000 35,000 Problem 3. CC and DD are partners who share profits and losses in the ratio of 7:3, respectively. On October 21, 2014, their respective capital accounts were as follows: CC P35,000 DD 30,000 P65000 On that date they agreed to admit EE as a partner with a one-third interest in the capital and profits and losses, and upon his investment of P25,000. The new partnership will begin with a total capital of P90,000. Immediately after EE’s admission, what are the capital balance of CC, DD and EE, respectively? A. P30,000; P30,000; P30,000 C. P31,667; P28,333; P30,000 B. P31,500; P28,500; P30,000 D. P35,000; P30,000; P25,000 Problem 4. In May, 2014, Imelda a partner of an accounting firm, decided to withdraw when the partners’ capital balances were: Mikee, P600,000; Raul, P600,000; and Imelda, P400,000. It was agreed that Imelda is to take a partnership’s fully depreciated computer with a second hand value of P24,000 that cost the partnership P36,000. If profits and losses are shared equally, what would be the capital balances of the remaining partners after the retirement of Imelda? Mikee Raul A. 600,000 600,000 B. 592,000 592,000 C. 608,000 608,000 D. 612,000 612,000 Problem 5. As of December 31, 2014, the books of Ton Partnership showed capital balances of: T, P40,000; O, P25,000; N, P5000. The partner’s profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and the sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of T in the distribution of the P28,000 cash would be: A. 17,800 B. 18,000 C. 19,000 D. 17,000 Problem 6. After all noncash assets have been converted into cash in the liquidation of the AA and JJ partnership, the ledge contains the following account balances: Debit Credit Cash P34,000 Accounts payable P25,000 Loan payable to AA 9,000 AA, capital 8,000 JJ, capital 8,000 Available cash should be distributed: P25,000 to accounts payable and: A. P9,000 loan payable to AA C. P1,000 to AA and P8,000 to JJ B. P4,500 each to AA and JJ D. P8,000 to AA and P1,000 to JJ Problem 7. The Central Plains Subdivision sells residential subdivision lots in installment. The following information was taken from the accounting records of Central Plains Subdivision as of December 31, 2014: Installment accounts receivable, 1/1/14 Installment accounts receivable, 12/31/14 Unrealized gross profit, 1/1/14 Installment sales P755,000 840,000 339,750 950,000 How much is the realized gross profit in 2014? A. 427,500 B. 339,750 C. 378,000 D. 389,250 Problem 8. Karr Co. began operations on January 1, 2014 and appropriately uses the installment method of accounting. The following information pertains to Karr’s operations for 2014: Installment sales P800,000 Cost of installment sales 480,000 General and administrative expenses 80,000 Collections on installment sales 300,000 The balance in the deferred gross profit account at December 31, 2014 should be A. 120,000 B. 150,000 C. 200,000 D. 320,000 Problem 9. Ube Construction Company has consistently used the percentage-of-completion method. On January 10, 2013, Ube began work on a P6,000,000 construction contract. At the inception date, the estimated cost of construction was P4,500,000. The following data relate to the progress of the contract: Income recognized at 12/31/2013 P600,000 Costs incurred 1/10/1013 through 12/31/2014 3,600,000 Estimated cost to complete at 12/31/2014 1,200,000 How much income should Ube recognize for the year ended December 31, 2014? 000 which included a markup of 15% on cost. During the first year of operations. During its first year of oeprations. 147. Bulacan reported operating expenses of P38. The Neneng Corp. 0 0 C.200. Branch profit for December was recorded by the home office at P2.000 D. P300.500 to the branch. Hart paid P400. Rizza started work on a P3. Krebs Crabs.00.750 B. home office shipped to its Bulacan branch merchandise worth P130.000 100.000 1. signed an agreement to operate as a franchisee of Ace Printers for an initial franchise fee of P1.000 400. P64. 1. 20. 30.550. at billed price. Any costs incurred are expected to be recoverable. The downpayment is nonrefundable and no future services are required of the franchisor. of which P100. 13. The branch returned supplies of P1.000 D.000.000.000 20.000 Problem 15.000 D.000 Problem 12.000 is payable upon signing and the balance payable in four equal annual installments. 1. on July 1. 2015.000 Problem 13. established an agency in Baguio City.500 to the home office but the home office has not yet recorded the receipt of the supplies.200 C.500 D.000 B.000. P800 B. 100. franchisor. 518. the Investment in Branch account in the Home Office books shows a balance of P50. 2014.000. 100. 23. The branch did not notify the home office of such collection 3.000 emergency cash transfer from Sto.000 C. 600. P177.140 B.69 At what amount should Hart record the franchise at the date of acquisition? A. Operating expenses of the branch amounted to P27. The Robert Corporation established its Bulacan branch in January 2014. the real net income of Bulacan is: A. 14. On July 1.150 Problem 14. P0 B.000 B. The following information may help in reconciling both accounts: 1.000 shipment.400 instead of P2. During 2014.000 B.275.000 C. Sales on account totaled P250.000. When Krebs prepares its financial statements on July 31. intended and charged to San Jose branch was shipped to San Lorenzo branch and retained by the latter 3.000. 1. On the same date. For the first month of operatios. Home office collects a San Lorenzo branch accounts receivable of P3.000 fixed-price construction contract.000 Problem 10.350 and the Home Office books showed a San Lorenzo branch account balances of P25. Inc. charged by Home Office to San Lorenzo branch. the home office sent cash of P7. the branch has not received the cash as of December 31 4.500. On December 31.000 Problem 16.200.040 5. Present and future value factors are as follows: Present value of P1 at 14% for 14 periods 0. A P15.100.000 0 Problem 11. the agency transactions were summarized as follows: Receipts from sales Disbursements for: Purchases Rent Advertising supplies 350. The branch reported a net income of P12. Merchandise billed at P12.000 while cash sales amounted to P80. How much net income will the branch report if merchandise is billed by the home office to the branch at 25% above cost? A. The merchandise is in transit. P100. 738. On June 30. its San Lorenzo branch showed a Home Office Account balance of P27. 2014: Costs incurred Estimated cost to complete Progress billings P930. Three-fourths of these merchandise was sold by the branch for P141.000 2.000 . The branch collected a home office accounts receivable for P3.100.000 D. P21.000 C. The accounting records disclose the following data for the year ended December 31. 525. On December 30. 982. A P12. Zeta Corp.500 is in transit on December 31 from the home office to the branch 2. Hart can borrow at 14% for a loan of this type.000. the home office shipped to the branch merchandise which had cost of P120. 39. Swift Corporation. 82.750 C.000 shipment.91 Future value of P1 at 14% for 4 periods 1. 900.000 10. Home Office was charged for P1.000 and ending inventory of P15. A P2. 192. It was agreed that the downpayment is not refundable.100. beginning July 1.200 for merchandise returned by San Lorenzo branch on June 28.170. the unearned franchisee fees to be reported is: A. The total franchise fees agreed upon is P1.000 P0 B. 27.140 C. operates a number of branches in Metro Manila. 2014. 1. established its San Pedro branch in March 2014. 2014.000. The following facts are ascertained: 1.675.350 D. What is the unadjusted balance of the Home Office account on the branch books on December 31? A. 1.000 and agreed to pay the balance in four equal annual installments of P200. was actually sent to and retained by Sto. but this was charged to General expense. In so far as the home office is concerned.A. 2014 Hart Corp. entered into a franchise agreement with Liwayway Ligaya. Tomas branch 2.000 C. Home office erroneously recorded San Lorenzo’s net income for May. notwithstanding lack of substantial performance of services by franchisor. Tomas branch was not taken up in the Home Office books 4.000. 8.59 Present value of an annuity of P1 at 14% for 4 periods 2. franchisee.000 D.000 D. 2014 at P16.000 Problem 17.600 and fails to notify the branch 5.000. What is the reconciled amount of the Home Office and San Lorenzo branch reciprocal accounts? A.000 How much loss should RIzza have recognized in 2014? Perecentage-ofCompletion Zero-profit (Cost Recovery) A. 000 5. Perez. Immediately after the combination.600 C.680.550 The company’s gross profit rate on agency sales is 30% excluding the freight cost on shipments to agency.5 baht = P1.000 On April 1.000 Liabilities 180. 2014 consolidated balance sheet.000 C. For 2014 consolidated financial statements. Sales and cost of goods sold should be reduced by 80% of the intercompany sales C.600 Problem 19. Love Corporation purchased the net assets of Dear Company for P310. 2014. Inc. there were P90.000 850.000 D. the acquisition resulted in: A. Perez sold goods with a 40% gross profit to Senior.000 Inventory 240. owns 80% of Senior.Salaries and commissions Other expenses 70. Depreciation A. 400.000 290.000 salvage value and depreciated the machine on the straight-line method over 20 years. The following is a summary of the transactions of the sales agency: Sales order sent to home office Sales order filled by home office in 2014 Freight on shipment of agency Collections.000 Liabilities 40. Negative goodwill of P50. In Poe’s December 31. Laguna in 2014.000 C.300 In the books of Love Corporation.000 Problem 21. Dear Company has assets and liabilities with the following fair values: Current assets P180.000 5.000 Problem 22. Sales and cost of goods sold should be reduced by the intercompany sales B. had common stock of P700.000 2.000 D. The entity’s functional currency is the peso. what was the consolidated net asset? A. sold a machine for P900.000 900.000 40. 2014.000 42. 350.000 profit D.000 and retained earnings of P980. 180.000 480. Blue Town issued 34.000. B. The closing rate was 1. the amount has not been paid. D. 2014.000 of unused advertising supplies on hand. 9.000 to Saxe Corp. P1.000. In its November 30. its wholly-owned subsidiary.000 C. plant and equipment exceeded it carrying amount by P400. Poe paid P1. 50.190. net of 10% discount Selling expenses paid from the agency working fund Administrative expenses charged to agency Samples shipped to agency: Cost Inventory. The book value of the assets and liabilities of Jack Company on April 1. What is the amount of goodwill resulting from the business combination? A. P3. this machine should be included in cost and accumulated depreciation as: Cost Accum.000 of payables. 2014.000 On June 1. C. Inc.000 Non-current assets 220. . Queen Corporation paid P800. when the exchange rate was 2 baht = P1. D.000 95.000 Plant and equipment (net of accumulated depreciation of P320. 2014. 0 Problem 23.000 shares of common stock with a P12 par value and a P35 fair value for all of Chapel Hill Company’s outstanding common stock. Deduction from non-current assets of P50. An entity purchased plant from a foreign supplier for 3 million baht on January 31. P2.. At that date.000 1.000. 1.000 loss Problem 18. 150. 2014.500 5% of gross sales 8. No profit.600 B.000 D.520. No adjustment is necessary Problem 25. it was determined that the inventory of Jack had a fair value of P190.000 of unsold merchandise and P6. December 31.000. At the entity’s year-end of March 31. Net income should be reduced by 80% of the gross profit on intercompany sales D. 2014. 2. Senior sold all of these goods in 2014. Chapel Hill Company had common stock of P350.000 At the end of that month. Also. 155.000 for this machine. follow: Cash P80. 5.000.000 for the assets and liabilities of Jack Company. Mama. what amount should Parlor report as goodwill? A. During 2014. On November 30. P25. Blue Town Inc. how should the summation of Perez and Senior income statement items be adjusted? A. 6. At November 30. opened a sales agency in San Pedro. the agency had P100. no loss C.100. Shaw’s balance sheet showed a carrying amount of net assets of P3. Poe Corp.000 B.200 4. Inc.000.000 P300. On May 31. 2014.000 and retained earnings of P490.000 B. What is the results of operations of the Baguio City agency? A. 2014 consolidated balance sheet.000 D. purchased for cash at P15 per share all 250.000 shares of the outstanding common stock of Shaw Co. Parlor Inc. 1. P750. 2014.000.100.000 and the plant and equipment (net) had a fair value of P560. the fair value of Shaw’s property. 2014. Poe estimated a P100.000 81. 1. What is the total comprehensive income of the agency for 2014? A. P0 B. Reduction from current assets of P50. On January 1. 2014. 2014 P120. On January 1. which had accumulated depreciation of P250.000 of receivables and P50.500 Problem 24.000 B. On April 1.870.000 loss B.000 Problem 20. This combination was accounted for as an acquisition. Income from acquisition of P50.000 cash.100.000 C. 000 What total amount should be included in Rowan’s December 31. ordered merchandise FOB shipping point from Japanese Company for 200. Department EE received its allotments broken down as follows: Capital Outlay (CO) P20.000 D. 2015) November 30.000. Filipino Corp’s translation loss on its investment in the subsidiary amounted to P500.000 Problem 32. the exchange rate if Y93 = P1.000 P200. 2014.92 0..000 (500.000.000 100. 2014.000 withholding tax.000 10.000 100.000. P450. while its exchange gain on the borrowing amounted to P300.900.4475 In Celt’s December 31.215 D. trade payable P1. 0 (200.5 million.000 Problem 30.000 on August 20. On February 1.000. P12. The agency made a downpayment of 30% of the contract price. Cost of plant 1. exchange loss of P. have been translated into Philippine peso as follows: Translated at Current rate Historical rate Note receivable. 2014. Agency GG received the first billing of 50% of the contract price. This contract gives Loma the option to purchase Y80. 2014 0.215 C.000 P450. The contract price is P50. P0 B.000 B. 2014.000 for a call option contract. P9. The expected delivery date is March 12. long-term P240. 5.000 10. Accounts payable Due to BIR Cash – National Treasury – MDS D.87 P0.000 B.600 B.000. Agency GG signed a contract for the construction of a building.89 December 12.000 yens. at December 31. 2015 .93 At December 31. Paris. Cost of plant 1.88 0. 2014 P. 2015 at which time settlement is due to the manufacturer. borrowed French francs as a partial hedge of its investment in Paris Co. 10. 8. Accounts payable Due to BIR Cash – Disbursing Officer 25. on December 31. What is the entry to record the payment of the first billing? A. The agency paid the first billing less P100. trade payable P2 million C.000 100. Certain balance sheet accounts of a foreign subsidiary of Rowan.000 9. 2014 income statement. Out of its total appropriation for 2014. 2014.000 9.000) 0 Problem 31. Cost of plant P2 million. 2014.900. Filipino Corp.000 .000 at an exchange rate of Y100 = P1 on August 20. what amount of foreign currency transaction gain from this forward contract should Important include in net income? A. the foreign exchange gain is: A.000. 2014.000 Problem 29. Important Co. 475.000 C. exchange loss of P. in the preparation of consolidated financial statements. Loma Corporation entered into a firm commitment to purchase specialized equipment from the Okazaki Trading Company for Y80. 2015. Celt Inc.5 million.6 million. To reduce the exchange rate risk that could increase the cost of the equipment in pesos.000 170. 2014 0. What amount of gain or loss should Filipino Corp. a wholly-owned subsidiary of Filipino Corp. On November 15.000 10. a Philippine Company. 2014 P0.5 million B. The merchandise was shipped and invoiced to Celt on December 10. (200.600 Problem 27.4955 December 10.90 December 31.000) D.4675 January 10. On June 18. report in consolidated income statement and balance sheet? Income Statement Balance Sheet A.000 C. 4. On December 12.000 D.4875 December 31.000.000 80. 2014 consolidated balance sheet for the above accounts using the translation method recognized under PAS 21? A. 495. The relevant exchange rates are as follows: Spot rate Forward rate (for March 12. The exchange rate on June 18 is Y100 = P1.5 million. Celt paid the invoice on January 10.000 24. Inc.000.000 local currency units (LCU) in ninety days to hedge a commitment to purchase equipment being manufactured to Important’s specifications. 60.000 B.5 million. trade payable P2 million D. On August 20.000. entered into a forward exchange contract to purchase 100.000 D. 455.000) C. 2014 .000 Prepaid rent 85. 2014 . Accounts payable Due to BIR Cash – National Treasury – MDS B. Cost of plant P2 million.000. 2014. trade payable of P2 million Problem 26.5 million. The hedge qualifies as a fair value hedge. How much did Loma save by purchasing the call option? A.900.000) P300. 1. is located in France. The spot rates for yens on the respective dates are as follows: November 15.Which of the following statements is correct? A.000.000. Loma pays P12.000 Patent 150.000 P475.000.000 C. exchange loss of P. Loma would have been better off not to have purchase the call option Problem 28. In 2014. 300. Accounts payable Cash – National Treasury – MDS C.000 Maintenance and Other Operating Expenses (MOOE) 10.000 10. (P500. 3. exchange loss of P. 48. On May 1. 000 D.000 The Department of Budget and Management (DBM) issued Notice of Cash Allocation to Department EE in the amount of P20.000.’s Palo Division for the month of April: Number of units Cost of materials Beginning work in process 15. P136. Joint processing costs to the split-off point are P15 per ton. 273. Memo entry in the Registry of Appropriations and Allotment D.500. (200.500 Ending work in process 12.Personal Services (PS) 5. Mig Co. had 80% complete as to the beginning work in process and 50% complete as to the ending work in process.000 P88. 0. 254.55 C. P12. 176. and three units of F3.000 Units completed 42. indirect materials.000 Cash contributions of P200. The following funds were among those held by State College at December 31. Using the weighted average method.000). two units of F2. a not-for-profit organization had the following contributions and expenditures for 2014: Unrestricted cash contributions of P500.000. P200. 300. produces gasoline and a gasoline by-product. May 1 50.000 C. The following information is available pertaining to 2014 sales and production: Total production costs to split-off point Gasoline sales By-product sales Gasoline inventory.500 Started in April 40.000 D. F2 and F3.250 B. P75. and other factory overhead incurred.45 D. The following information pertains to Lap Co. P156.000 Total P36.000 of direct labor and P11.000 Financial Expenses 1. 700. (P200. Memo entry in the general journal C.000 Units started and cost incurred in May 270.000 Problem 37.000 P5. 20% B. 180.500.000. 33 1/3% D. started and completed during 2014. what proportion of joint costs should be allocated to F1? A.000 Problem 39.000 If the company uses the FIFO method.000 D.000 restricted by the donor to the acquisition of property Cash expenditures of P200. 0. Each ton of raw materials produce five units of F1. 900. P500.000 15. 0.000 Principal expendable after the year 2018 300. Memo entry in the Registry of Allotments and Obligations B. P62. 137. the Cutting Department of Damit Co. 0.500. was charged with the following costs: Department A B Direct materials P25. 0.000.000 Problem 34. P100.000 D.000.: direct materials. 500.250 of indirect labor.000 C. respectively? A.500 C.000 Direct labor ? 30. P135.000 B.000 .000 What amount should State College classify as regular endowment funds? A. investing and financing activities. For the month of May.000 P5.000 ? The total manufacturing cost associated with Job 123 should be A. National Clearing Account P36. which began operations in 2014.000 B. the conversion cost of the work in process in the Cutting Department at the end of May would amount to A.000 18. 195. The following selected information pertains to Ajax Processing Co.000 572.000 Factory overhead 40.000.000 B. Johnson uses a job order cost system and applies factory overhead to production orders on the basis of direct labor cost. The total conversion cost was: A.000 Appropriation allotted P36. 12/31/2014 Additional by-product costs: 120. 250. 0.000.000 270. 0 B.43 Problem 38. 132.000 Units completed and transferred to the next department in May 200.000. 30% C. the cost per equivalent unit for materials is A.000. Related data follow: Units Conversion cost Work in process.000 C. Job 123.000).000 Problem 33. 500.000 Problem 35.750 Problem 36. A company processes raw material into Products F1. The overhead rates for 2014 are 200% for Department A and 50% for Department B. Further processing results in the following per unit figures: F1 F2 F3 Additional processing costs per unit P28 P30 P25 Selling price per unit 30 35 35 If joint costs are allocated by the net realizable value of finished product. 240.000 30. 50% Problem 40.000 to acquire property with the donation in the above item Baguio Foundation’s statement of cash flows should include which of the following amounts for operating. 2014: Principal specified by the donor as nonexpendable P500. Department EE records the allotment by a: A.000 Principal designated from current funds 100.000 C.000. 500. P37. 0 D. The Baguio Foundation. 200. factory payroll.500 All materials are added at the beginning of the process.000.59 B.. 108. there were no beginning inventories of raw materials and no beginning and ending work-in-process. The following overhead cost data have been accumulated: Activity Center Cost Driver Amount of Activity Center Costs Materials handling Kilos handled 100.000 D. secured by the Cadillac.000 B.500 units. 500 C.000 respectively D.000 units. P205.000 B.375.000 Job RST contains 3. the bank that holds the note on the Cadillac should receive: A.000 Painting Units painted 50.200 F C. P20. 3.000. 200. (2) P1. In the liquidation.300 U.000 respectively Problem 42. P6. P25. the balance due on the Cadillac amount to P6.000. P550.000 direct labor hours.300 F.000. has been undergoing liquidation since January 1. the controller examines the amount of overhead that should be assigned to the individual product lines from the information given as follows: Ordinary glass Special glass Units produced 25 25 Material moves per product line 5 15 Direct labor hours per unit 200 200 Budgeted materials handling costs.200 F B. For May. Derf Company applies overhead on the basis of direct labor hours. 1. The 17. (2) P1.200 for 2.000 and P45.000 37.200 U Problem 47.750 C.000 kilos and uses 300 hours of labor What is the total overhead cost assigned to Job RST? A. The unsecured creditors of Zamora and Co. P550.300 U. 1.000 unfavorable D.000 units.000 Problem 48.Marketing 10. Zero Na Corp. Actual production was 900 units and direct labor cost was P19.000 unfavorable Problem 46. When the company files for bankruptcy.000 respectively B.000 C.000 and P945. 2. Action uses a JIT manufacturing system and backflush costing with three trigger points for making entries in the accounting system: Purchase of raw materials – debited to Raw and In Process account Completion of finished goods – debited to Finished Goods account Sale of finished goods Action’s May standard cost per meter are direct materials. Variable manufacturing overhead cost incurred was P108. Under activity-based costing system.500 Problem 45.000.000 Assembly Labor hours 4. The car has a book value of P8.000. 200.000 in June 1 RIP inventory account.500 in the June 30 RIP inventory account and the amount of raw materials used backflushed from RIP inventory account on June 30 is P202. (1) P5.000 favorable C. As of March 31. and (2) variable overhead efficiency variance: A. Super Glass Co.000.000 P440.000 units 200.000 and a net realizable value of P4. what is the material handling cost assigned to one unit of ordinary glass? A.000 Mig accounts for the by-product at the time of production.500.000 for the period.000 D. and conversion costs. 2. 32.000 0 Problem 41. 5. 27. (1) P5. Planned production for the period was set at 9.000 respectively C. What are Mig’s 2014 cost of sales for gasoline and the by-product? Gasoline By-product A.000 hours 120. Two direct labor hours are required for each product unit.000 0 C. 4.300 F.955 B.000 Production 15.200 hours worked during the period resulted in production of 8. 1. 26. and P12. P25. Zamora and Co. of which 20% of this cost is fixed.000. P31.000 25.000 .000 C.000. (2) P1.000 units.000 D.000 and P945. The Action Corporation manufactures electrical meters.000 D. The direct labor efficiency variance was A. what is the amount of raw materials purchased on credit for the month of June? A.000 Problem 44. 115.500 D. Inc purchased a Cadillac automobile with little cash down and signed a note. (2) P1. Mactan Enterprises is a Philippine exporter of souvenir items manufactured in the capital city of Cebu.000 and P45.000 21. It weighs 10.000.000 20. P50. can expect to receive 50% of their claims.000 The balances of Raw in Process and Finished Goods inventory accounts at the end of May are: A. Compute the (1) variable overhead spending variance. 2.000. (1) P5.000 B.000 B.000 Problem 43. P25. As part of its analysis of the profitability of individual products. is preparing its annual profit plan. for 48 easy monthly payments. Manufacturing overhead is budgeted at P135.000 grams P50.500 and fixed manufacturing overhead cost was P28. 105.200 U D. Derf Company uses a four variance method for analyzing manufacturing overhead. 100. The direct labor standards for producing a unit of a product are two hours at P10 per hour. Budgeted production was 1. 225.000. P1. (1) P5. its condensed statement of liquidation and realization is presented below: Assets: Assets to be realized P1. If EDSA Company has material cost of P10.000 favorable B. The following data apply to May manufacturing: Raw materials and components purchases Conversion costs incurred Number of finished units manufactured Number of finished units sold P550. the three participants decided to recognize the profits or losses for the three months period.800.400 (Credit) B. The inventor is listed at 25% above cost at P50.000 The net gain (loss) for the three-month period ending March 31 is: A.000. 19. On December 31. P16. The following balances appear at the end of 2014 before adjustments for venture inventory and profits Joint venture cash Silva. No separate books are maintained for the joint venture. They were to market a special alarm device. 750. 15. Silva and Torre formed a joint venture.200.000 (Debit) D.000 D.000 The venture is to terminate on December 31.000) D. The joint venture account has a debit balance of P24. Remaining profit (loss) is to be divided equally. what is the balance of the Joint Venture account before the distribution of profit? A.000 Problem 49.000. Ramos is to act as manager and is designated to record the joint venture accounts in his books.700. and C entered into a joint venture business.000. 2014.Assets acquired Assets realized Assets not realized 750. 5.000 3. 425. (24.000 B.000 B. 2014.000) C. 26.000 Liabilities assumed 1.000 Liabilities to be liquidated 2.400.000 Credit P27.000 1. What was the joint venture profits (losses) for the three months period? A. capital Torre.000 Revenues and Expenses: Supplementary charges Supplementary credits P3. while the joint venture is still uncompleted.000 Liabilities not liquidated 1.400 (Debit) C. P250.000 Liabilities: Liabilities liquidated P1. he is allowed a salary of P12.000 1. As manager.000 2. On October 1. capital Debit P48.125.625. P6.400 (Debit) Problem 50.000 C. A.875. (325.000. Assuming that the joint venture profit is P5. The venture profits and losses were to be shared into 5:3:2 ratio. 2014 with unsold merchandise costing P10.375. Ramos. 13. respectively.500 .B.250.