2nd Year Phase Two

Which of the following statements are the disadvantages of Job Costing?

I. The price of a job is fixed only on the basis of market condition not on the basis of past records.

II. There is no standardization of job in job costing.

III.  Job costing facilitates pricing of each job.

• I and II

• I and III

• II and III

• All of the above

Choose the combination that best reflects the appropriate classification of cash received from operating investing and financing activities

• Operating (Issuance of bonds payable): Investing (Sale of operational assets): Financing (Dividends received)

• Operating (Dividends received); Investing (Cash paid by customers): Financing (Issuance of bonds payable)

• Operating (Sale of operational assets); Investing (Dividends received); Financing (Cash paid by customers)

• Operating (Cash paid by customers): Investing (Sale of operational assets): Financing (Issuance of bonds payable)

In jurisdiction where the impairment of goodwill is not tax deductible, income taxes:

• Requires that any deferred tax items in relation to goodwill be recognized directly in equity

• Does not permit the application of deferred tax accounting to goodwill

• Allows the recognition of a deferred tax item in relation to goodwill

• Requires that any deferred tax items for goodwill be capitalized in the carrying amount of goodwill

LOML Co. produced 5,500 outdoor chairs for Job Order No. 610. Total material cost was P51,700 for all of the produced chair, direct labor of P8.90/hour wherein it took 2.2 hours to make one chair, and a total factory overhead of P53,845.

What is the prime cost per unit of Job Order No. 610?

• 38.77

• 28.98

• 29.37

• 19.58

The statement of Comprehensive Income for Cocomelon Company for the current year is presented below

Sales = 400,000

Variable Cost = 125,000

Fixed Costs = 200,000

            What is the degree of operating leverage of Cocomelon Company?

• 3.67

• 2.67

• 5.33

• 1.67

On January 1, 2008, Tough Company acquired 10% of Complex Company's ordinary shares outstanding for P6,000,000. Tough appropriately accounts for this investment by the cost method. Complex Company reported the following for the years ended December 31, 2008 and 2009:

2008 - Net Income, 400,000; Cash Dividend, 0

2009 - Net Income, 1,200,000; Cash Dividend, 1,800,000

In its income statement for the year ended December 31, 2009, Complex Company should report dividend income at:

• 0

• 120,000

• 160,000

• 180,000

Data regarding Buggy Company's available for sale securities follow:

December 31, 2008 - Cost, 4,000,000; Market, 3,500,000

December 31, 2009 - Cost, 4,000,000; Market, 3,200,000

Differences between cost and market value are considered temporary. The shareholders' equity section of the December 31, 2009 balance should report unrealized loss on these securities at:

• 800,000

• 500,000

• 300,000

• 0

Octo Games Company places one coupon in each box. Five coupons are redeemable for a

         premium consisting of a hand puppet. In 2021 the company purchases 720,000 puppets at

         P15 and sells 1,500,000 boxes of “Mallow Pillows” at P50 per box. 

 

Based from its experience with other similar premium offers, Octo Games Company estimates that 80% of the coupons will be mailed back for redemption and will cost P4. In 2021, 375,000 coupons were presented for redemption of which 45,000 coupons remains under processing at December 31, 2021.

 

What is the premium expense reported in 2021?

• 3,600,000

• 1,425,000

• 5,700,000

• 4,560,000

Bubblegum, Inc.’s checkbook balance on December 31, 2020 was P 21,200. In addition, Bubblegum held the following items in its safe on December 31.

 

1) A check for P 450 from BMO, Inc. received December 30, 2020, which was not included in the checkbook balance.

2) An NSF check from Peppermint Company in the amount of P900 that had been deposited at the bank but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, 2021. The original deposit has been included in the December 31 checkbook balance.

3) Coin and currency on hand amounted to P 1,450.

 

The proper amount to be reported on Bubblegum's statement of financial position for cash at December 31, 2020 is

• 21,300

• 20,400

• 22,200

• 21,750

Aveela Company’s northwestern factory provided the following information for the last calendar year:

Beginning Inventory:

Direct Materials = 50,800

Work in Process = 58,500

Ending Inventory:

Direct Materials = 21,500

Work in Process = 23,500

During the year, direct materials purchases amounted to P 150,000, direct labor cost was P 200,000, and overhead cost was P 324,700. There was 100,000 units produced.

 

Calculate the Cost of Goods Manufactured.

• 589,000

• 709,700

• 739,000

• 780,500