Professional Documents
Culture Documents
Which of the following is an inventory account of a manufacturer but Other assets P 405,000 Accounts payable P108,000
not of a merchandiser?
a. Cost of goods manufactured Quiel, loan 18,000 Quiel, capital 175,500
b. Merchandise Inventory Roger, capital 139,500
c. Work in process inventory Total P 423,000 Total P 423,000
d. Direct labor
11. The partners have decided to liquidate the partnership. If the other
2. Cost of goods manufactured is used to compute assets are sold for P346,500, what amount of the available cash
a. Cost of goods sold should be distributed to QUIEL?
b. Manufacturing overhead applied a. P136,000 c. P122,400
c. Direct materials used b. P156,000 d. P195,000
d. Finished goods inventory
On January 1, 2014, the partners SELYA, TESSA, and URSULA, who share
3. Which of the following is a period cost? profits and losses in the ratio of 5:3:2, respectively, decided to liquidate
their partnership. On this date the partnership condensed balance sheet
a. Materials inventory was as follows:
b. Direct labor
c. Manufacturing overhead Cash P 45,000 Liabilities P 54,000
d. Selling expenses Other assets 225,000 Selya, capital 72,000
Tess, capital 81,000
4. Job order costing would be an appropriate system to account for the Ursula, capital 63,000
manufacture of Total P 270,000 Total P270,000
a. Aircraft
b. Matches
c. Zippers On January 15, 2014, the first cash sale of other assets with a carrying
d. Cardboard boxes amount of P135,000 realized P108,000. Safe installment payments were
made on the same date.
5. A written order sent to inform the purchasing department of a need 12. How much cash should be distributed to each partner?
for materials is called a SELYA TESSA URSULA
a. P15,000 P51,000 P44,000
a. Purchase order
b. P40,000 P45,000 P35,000
b. Purchase requisition
c. P55,000 P33,000 P22,000
c. Receiving report
d. P13,500 P45,900 P39,600
d. Materials requisition form
CLAIRE, DAISY, and ELSIE formed the CDE Partnership on August 1, 2015,
6. Under a periodic inventory system, the purchase of materials is
with the following assets, measured at fair market values, contributed by
recorded in an account entitled
each partner:
a. Cost of Goods Sold CLAIRE DAISY ELSIE
b. Purchases Cash P 324,000 P108,000 P129,600
c. Materials inventory Accounts receivable
d. Work in Process Inventory 73,080 - 91,800
Plant, Property, &
7. The total of the materials subsidiary ledger inventory cards must be Equipment (PPE) 1,620,000 340,200 -
equal to the amount in the following account
a. Cost of Goods Sold A part of CLAIRE’s cash contribution, P216,000, comes from personal
b. Purchases borrowings. Also, the PPE of CLAIRE and DAISY are mortgaged with the
c. Materials Inventory bank for P972,000 and P72,000, respectively. The partnership is to assume
d. Work in Process Inventory responsibility for these PPE mortgages. The partners have agreed to share
profits and losses on a 5:2:3 ratio, to CLAIRE, DAISY, and ELSIE, respectively.
8. Which of the following is usually prepared daily by employees for 13. What is the capital balance for each partner at the opening of
each job worked on? business on August 1, 2015?
a. Job time tickets a. CLAIRE, P1,045,080; DAISY, P376,200; & ELSIE, P221,400
b. Time card b. CLAIRE, P1,161,200; DAISY, P418,000; & ELSIE, P246,000
c. Punch card c. CLAIRE, P1,987,500; DAISY, P189,000; & ELSIE, P217,500
d. Cost control card d. CLAIRE, P1,095,120; DAISY, P547,560; & ELSIE, P182,520
9. Under a perpetual inventory system, the purchase of materials is On January 1, 2015, FRIDA and GLACE formed a partnership by
recorded in an account entitled contributing cash of P405,000 and P270,000, respectively. On February 1
2015, Partner FRIDA contributed an additional P135,000 cash to the
a. Cost of Goods Sold partnership and on August 1, 2014 Partner FRIDA made a permanent
b. Purchases withdrawal of P67,500. On May 1, 2015, Partner GLACE contributed
c. Materials inventory machinery with a fair market value of P90,000 and a net book value of
d. Work in process inventory P75,000 when contributed. On November 1, 2015 Partner GLACE
contributed an additional P45,000 cash to the partnership. Both partners
10. Factory worker fringe benefit costs are usually charged to withdrew one-fourth of their salary allowances in 2015.
a. Work in process Inventory
b. Direct labor The partnership reported a net income of P257,400 in 2014 and the profit
c. Administrative expenses and loss agreement are as follows:
d. Factory overhead a. Interest at 6% is allowed on average capital balances;
b. Salaries of P2,700 per month to each partner;
The following condensed balance sheet is prepared for QUIEL and ROGER, c. Bonus to FRIDA of 10% of net income after interest, salaries, and
who share profits and losses in the ratio of 60:40, respectively: bonus; and
d. Balance to be divided in the ratio of 6:4 to FRIDA and GLACE,
respectively.
2014 sales 102,400 51,200
14. Determine how the net income will be allocated to the partners: 2015 sales 0 153,600
a. FRIDA, P160,000 and GLACE, P126,000 Accounts written off from
b. FRIDA, P 180,000 and GLACE, P106,000 2014 sales 25,600 76,800
c. FRIDA, P170,000 and GLACE, P116,000 2015 sales 0 153,600
d. FRIDA, P153,000 and GLACE, P104,400 Gross profit rates 40% 30%
Cash P 12,150 Accounts payable P 13,500 BROWN DERBY COMPANY began operations on June 1, 2015. The
Other assets 119,700 Haidee, Loan 5,850 following information are extracted from its records at year-end. Cost of
Isabel, Loan 9,000 Haidee, capital 81,000 installment sales, P2,991,424; Cost of Regular Sales, P1,680,000. Mark-up
Isabel, capital 40,500 on installment sales is 40% of cost while regular sales is 33-1/3% based on
Total P 140,850 Total P140,850 sales. At the end of 2015, the balance of Installment accounts receivable is
P2,520,000; Accounts receivable is P1,176,000. Operating expenses
At this date, JOSIE was admitted as a partner for a consideration of P43,875 (includes losses on repossession) total to 75% of the realized gross profit.
cash for a 40% interest in capital and in profits. 19. What is the net income for the year ended December 31, 2015?
15. Assume JOSIE is admitted by purchase of 40% each of the original a. P329,142 c. P 543,984
partners’ interest, determine how the P43,875 will be apportioned to b. P546,000 d. P 279,918
HAIDEE and ISABEL
a. HAIDEE, P32,850 and ISABEL, P15,900 BEIGE STALKS CORPORATION, which began operations on January 1, 2014,
b. HAIDEE, P32,450 and ISABEL, P16,300 appropriately uses the installment method of accounting for revenues. The
c. HAIDEE, P29,565 and ISABEL, P14,310 following information is available for the years ended December 31, 2014
d. HAIDEE, P32,950 and ISABEL, P15,800 and 2015: