1.

On the month of January 2019, the assembly department of Kios

Company has the following data. The company uses FI-FO process
costing to determine the per unit cost of its only product called X-100.

Units Conversion Cost

Beginning Work In Process 50,000 95%

Units started 160,000

Ending Work in Process 20,000 60%

Product X-100 has a direct material called “XYZ-Steel” which are

added at the beginning of the process. It has also a direct material
called “softener” which is added when the conversion cost rate is at
80%. A material called “extreme softener” is added only when it is
determined that “softener” is not enough to softened Product X-100.
Units of Product X-100 is inspected when the conversion cost rate is 90%
to determine if “extreme softener” is required. For the units started in
January, 84,000 cost of “extreme softener” were consumed for 30,000
units of Product X-100 of which all were completed during the period. In
the beginning WIP, 12,000 cost of extreme softener were also
consumed for 5,000 units of Product X-100.

Cost data:

Beginning Cost Current Period

XYZ-Steel 130,000 480,000
Softener 100,000 660,000
Extreme Softener 91,000 ?
Conversion Cost 560,000 1,081,500

What is the equivalent units of Extreme Softener for January?

A. 35,000
B. 15,000
C. 30,000
D. 0

2. What is the cost of Ending WIP?

A. 474,000
B. 144,000
C. 454,000
D. 0

3. What is the cost of Transferred-out inventories?

A. 1,747,500
B. 2,958,500
C. 2,662,500
D. 0

4. Johnson && Johnson Company has three departments,

assembly,finishing and packaging, respectively. The following
production data were presented for determining the cost of finished
goods on the month of January 2019.

Packagin
Assembly Finishing
g
Beginning WIP 15,000 10,000 5,000
Units Started 80,000 77,000 79,000
Ending WIP(80% Complete as to
18,000 8,000 6,000
Conversion Cost)
Completed units under each
77,000 79,000 78,000
department

Department cost of units

completed under each
department
 Conversion Cost 100,000 80,000 100,000
Direct Material 60,000 72,000 56,000
Total 160,000 152,000 156,000

Direct material are added at the beginning of the process. The

Company uses Weighted Average Costing.

What is the per unit cost of Finished goods inventory for January?
A. 6
B. 2
C. 0
D. Cannot be determined.

5. The following information pertains to the department B of ABC

manufacturing for the period January 2018.

Direct Conversion
Beginning WIP Materials Cost

Cost Added from Department A 4,000.00 2,000

Cost Added by Department B 10,000.00 15,000

Transferred Units from Department A Direct Conversion

during the period (20,000 Units) Materials Cost
Cost Added from Department A 47,000 31,000
Cost Added by Department B 15,500 23,800

Conversion
Direct Material Cost
Percent of Completion
 Beginning WIP (1000 Units) ? 40%
Ending WIP (4000 Units) ? 60%

Direct Materials are added at the end of production. The

company uses Weighted Average Method.
Compute the cost of ending work in process?

a. 28,800
b. 16,800
c. 15,400
d. 20,800

6. Compute the cost of units transferred out to the succeeding

department?

a. 129,500
b. 110,500
c. 111,900
d. 127,500

7. A company uses process costing system to account for the cost of its
only product, Product D. The production begins in fabrication
department where units of raw materials are molded into various
connecting parts. After fabrication is complete, the units are
transferred to the assembly department. There is no material added in
Assembly department. After assembly is complete, the units are
transferred to the packaging department where packaging materials
are places around the units. After the units are ready for shipping, they
are sent to the shipping area.

At year end, June 30, the following inventory of Product D is on hand

and other pertinent information’s.

Fabrication department: 300 units: 2/3 complete as to raw material ,

½ complete as to direct labor.
Assembly department: 1,000 units 2/5 complete as to direct labor. There
were 100 units of beginning inventories which were 40 % complete as to
assembly department direct labor.

Packaging department: 100 units ¾ incomplete as to packing

material and ¼ as to direct labor.

Shipping area: 400 units

The following cost has been incurred by each department during the
month.

Material Conversion Transferred-in Cost

Cost
Fabrication 500,000 800,000 ?
Assembly ? 160,000 1,100,000
Packaging 100,000 50,000 1,110,000
Shipping ? ? 1,150,000

All cost added in shipping department are period cost. The cost of
Beginning WIP in each Department are as follows:

The beginning Cost of WIP in each department is as follows

Fabrication……………50,000

Assembly ……………..70,000

Packaging…………….90,000

The company uses FIFO Average Method.

What is the cost of finished goods Inventory?

A. 1,150,000
B. 3,360,000
C. 0
D. Cannot be Determined

8. If Packaging department started 100,000 units. What is EUP for

Transferred-in cost in Assembly ?
A. 101,000
B. 100,900
C. 100,000
D. 99,000

9. What is the cost of WIP Inventory in Fabrication?

A. Cannot Be Determined
B. 250,000
C. 200,000
D. 0

10. On January 1, 2016, Pope Company acquired 100% of the

common stock of Siegel Company for 300,000. On this date Siegel had
total owners' equity of 250,000. Any excess of cost over book value is
attributable to goodwill. Pope accounts for its Investment in Siegel using
the cost method.

On January 1, 2016, Siegel Company sold to outside investors 300,000

par value of 10-year, 10% bonds. The price received was equal to par.
The bonds pay interest semi-annually on July 1 and January 1.

During 2016, market interest rates on bonds similar to those issued by

Siegel decreased to 8%. As a result, the market value of the bonds
increased. On December 31, 2016, Pope purchased 150,000 par value
of Siegel's bonds, paying 163,000. Pope still holds the bonds on
December 31, 2019 and has amortized the premium, using the
straight-line method.
For the year 2016, the consolidated interest expense to reported must
be?
A. 30,000
B. 15,000
C. 31,300
D. 0

11. For the year 2019, the consolidated interest expense to be reported
must be?
A. 30,000
B. 15,000
C. Cannot be determined
D. 0

12. This year, Rose Company acquired all of the common stock of
Hayley Company. At the end of the current year, balances of selected
accounts and other information for each of the companies were as
follows:
Rose Hayley
Sales 2,582,000 1,734,000
Accounts receivable 580,000 235,000

Sales to Hayley during the year 80,000

Sales to Rose during the year 20,000
Gross profit on all sales 25% 30%

At the end of the year, 50% of the inventory that Rose sold to Hayley
remained in Hayley’s inventory, and 30,000 of the amount of the sales
was unpaid. Rose still owes half of the amount of its purchases to Hayley,
but had sold all of the inventory it had acquired from Hayley by the end
of the year.

What is the amount of consolidated cost of sales at the end of the

year?

a 4,216,000
.

b 4,316,000
.

c 4,229,000
.
 d 4,226,00
.

13. This year, Rose Company acquired all of the common stock of
Hayley Company. At the end of the current year, balances of selected
accounts and other information for each of the companies were as
follows:
Rose Hayley
Sales 2,582,000 1,734,000
Accounts receivable 580,000 235,000

Sales to Hayley during year 80,000

Sales to Rose during year 20,000
Gross profit on all sales 25% 30%

At the end of the year, 50% of the inventory that Rose sold to Hayley
remained in Hayley’s inventory, and 30,000 of the amount of the sales
was unpaid. Rose still owes half of the amount of its purchases to Hayley,
but had sold all of the inventory it had acquired from Hayley by the end
of the year.

What is the consolidated Accounts receivable balance at the end of

the year?

a 815,000
.

b 795,000
.

c 789,000
.

d 775,000
.

14. Stroud Corporation is an 80%-owned subsidiary of Pennie, Inc.,

acquired by Pennie several years ago. On January 1, 2017, Pennie sold
land with a book value of 60,000 to Stroud for 90,000. Stroud resold the
land to an unrelated party for 100,000 on September 26, 2018. The gain
from sale of land that will appear in the consolidated income
statements for 2017 , 2018 and 2019 respectively, is ____.

a 0 ; 10,000 ; 0
.
 b 0; 40,000 ; 0
.

c 30,000 ; 10,000 ; 0
.

d 30,000 ; 40,000 ; 0
.

15. On January 1, 2016, Poe Corp. sold a machine for 900,000 to Saxe
Corp., its wholly-owned subsidiary. Poe paid 1,100,000 for this machine.
On the sale date, accumulated depreciation was 250,000. Poe
estimated a 100,000 salvage value and depreciated the machine on
the straight-line method over 20 years, a policy that Saxe continued. In
Poe's December 31, 2016, consolidated balance sheet, this machine
should be included in cost and accumulated depreciation as

Cost Accumulated Depreciation

a 1,100,000 300,000
.

b 1,100,000 290,000
.

c 900,000 40,000
.

d 850,000 42,500
.

16. Selected information from the separate and consolidated balance

sheets and income statements of Palo Alto, Inc. and its subsidiary,
Stanford Co., as of December 31, 2016, and for the year then ended is
as follows:

Palo Alto Stanford Consolidated

Balance sheet accounts:
Accounts receivable 26,000 19,000 42,000
Inventory 30,000 25,000 50,000
Investment in Stanford 67,000 -- --
Stockholders' equity 154,000 50,000 154,000

Income statement accounts:

Revenues 200,000 140,000 300,000
Cost of goods sold 150,000 110,000 225,000
Gross profit 50,000 30,000 75,000
Equity in earnings of Stanford 9,000 -- --
Net income 36,000 20,000 36,000

Additional information:

During 2016, Palo Alto sold goods to Stanford at the same mark-up on
cost that Palo Alto uses for all sales. At December 31, 2016, Stanford
had not paid for all of these goods and still held 50% of them in
inventory.

Palo Alto acquired its interest in Stanford five years earlier (as of
December 31, 2016).

The amount of inter-company sales from Palo Alto to Stanford during

2016?

A. 40,000
B. 60,000
C. 50,000
D. 0

17. The amount of Stanford's payable to Palo Alto for inter-company

sales as of December 31, 2016.?
A. 15,000
B. Cannot be determined
C 3,000
C. 0

18. In Palo Alto's December 31, 2016, consolidated balance sheet, the
carrying amount of the inventory that Stanford purchased from Palo
Alto?
A. 20,000
B. 15,000
C. 25,000
D. 0

19. Company B is a wholly owned subsidiary of A. The following

information is available for the year 2019.

A B
Cost of Sales Reported 80,000 70,000
Gross profit on Sales to third
20% 30%
parties
Inter-company Sales 10,000 15,000
Unrealized Profit, Down Stream
4,500
Sales
Unrealized Profit, Up Stream
8,000
Sales

Compute the consolidated cost of sales reported by B during 2019?

A. 99,000
B. 125,000
C. 150,000
D. 0

20. On January 1, 2016, Promo, Inc. purchased 70% of Set Corporation

for 620,000. On that date the book value of the net assets of Set totaled
500,000. Moreover, Promo has a retained earnings of 150,000 at the
date of acquisition while Set has 340,000 and 420,000 at the beg and
end of the year. Based on the appraisal done at the time of the
purchase, all assets and liabilities had book values equal to their fair
values except as follows:

Book Value Fair Value

Inventory 100,000 120,000
Land 75,000 85,000
Equipment (remaining useful life 4 years) 125,000 165,000

During 2016 Promo reported net income of 200,000 and Set had net
income of 100,000.

What is consolidated net income for the year 2016 ?

a 252,000
.

b 276,000
.

c 270,000
.

d 300,000
 .

21. What is the consolidated retained earnings on December 31, 2016?

a 389,200
.

b 403,200
.

c 270,000
.

d 300,000
.

22. On January 1, 2016, Payne Corp. purchased 70% of Shayne Corp.'s

10 par common stock for 900,000. On this date, the carrying amount of
Shayne's net assets was 1,000,000. The fair values of Shayne's
identifiable assets and liabilities were the same as their carrying
amounts except for plant assets (net), which were 200,000 in excess of
the carrying amount. For the year ended December 31, 2016, Shayne
had net income of 150,000 and paid cash dividends totaling 90,000.
Excess attributable to plant assets is amortized over 10 years.

In the December 31, 2016, consolidated balance sheet, non-controlling

interest should be reported at ____.
a 282,714
.

b 300,500
.

c 397,714
.

d 345,500
.

23. Prossart Company owned 70% of the outstanding stock of Say

Company. During the annual goodwill impairment test, the following
information pertaining to Say was noted:

Book value of net assets 2,000,000

Fair value of Say Company 1,800,000
Estimated fair value of net identifiable assets 1,700,000
Recorded goodwill 200,000
The amount of consolidated goodwill that would be recorded on
Prossart’s books would be:
a 200,000
.

b 140,000
.

c 100,000
.

d0
.

24. Patten Company purchased an 80% interest in Salty Inc. on January

1, 2016, for 500,000 when the stockholders' equity of Salty was 500,000.
Salty earned 62,000, evenly, during 2019. In 2019. Goodwill is impaired
which amounts to 10,000 and 6,000 is attributable to parent. . The NCI
at the end of 2016 is?
a 100,000
.

b 120,400
.

c 133,400
.

d 135,400
.

25. Page Company purchased an 80% interest in the common stock of

the Seed Company for 600,000 on January 1, 2019, when Seed
Company had the following stockholders' equity:

Common stock, 10 par 300,000

Cumulative preferred stock, 10%, 10 par 100,000
Paid-in capital in excess of par, common 50,000
Retained earnings 200,000

Any excess of cost over book value on the common stock purchase
was attributed to goodwill. Page does not hold any of Seed’s preferred
stock. Seed had net income of 40,000 during 2019 and paid no
dividends.

The preferred stock is one year in arrears on January 1, 2019. The

goodwill that will appear on the consolidated balance sheet prepared
on January 1, 2019, is ____.
a 80,000
.

b 88,000
.

c 210,000
.

d 168,000
.

26. Page Company purchased an 80% interest in the common stock of

the Seed Company for 600,000 on January 1, 2019, when Seed
Company had the following stockholders' equity:

Common stock, 10 par 300,000

Cumulative preferred stock, 10%, 10 par 100,000
Paid-in excess of par, common 50,000
Retained earnings 200,000

Any excess of cost over book value on the common stock purchase
was attributed to goodwill. Page does not hold any of Seed’s preferred
stock. Seed had net income of 40,000 during 2019 and paid no
dividends.

The preferred stock is two years in arrears on January 1, 2019. The

non-controlling interest share of 2019 net income was ____.
a 3,200
.

b 6,000
.

c 8,000
.

d 16,000
.
27. Golden Company has the following transactions relating to its
investment portfolio for the year 2014.
 On February 1, 2014, the entity acquired 80% of the outstanding
stock of Mississippi Company for 450,000. The management
acquired the investment for the purposes of short-term profit
making. On April 1, 2014, Golden Company purchases 100,000
worth of inventories from Mississippi Company. Half of the
payable is unpaid on December 31, 2014. The fair market value
of the investment on December 31, 2014 is 567,890.
 On June 30, 2014, the entity acquired 40% interest in Silver
Company. The fair value of the acquired interest is 85,600. On
December 31, 3014, Silver company had unpaid purchases from
Golden Company amounting to 33,000. The fair market Value of
the investment on December 31, 2014 is 113,000.
 On July 1, 2014, the entity acquired 100% outstanding capital
stock of Schneider Company for 567,000. On December 31, 2014,
Golden Company has outstanding obligation to Schneider
Company amounting to 37,000 for its merchandise purchases
after the acquisition.
The following data shows the Trade Receivables and Payables of
each company:
Trade Receivables Trade Payables
Golden Company 456,000 345,000
Mississippi Company 123,000 180,000
Silver Company 347,000 147,000
Schneider Company 234,000 333,000

The Consolidated Statement of Financial Position on December 31,

2014 will show a consolidated Trade receivables and Trade Payable in
the amount of?
a. 968,800 and 774,800 respectively
b. 653,000 and 641,000 respectively
c. 726,000 and 771,000 respectively
d. 789,000 and 790,000 respectively

28. On January 1, 2014, Johnson Company has an 80% interest in

Indiana Company purchased for 1,237,000 pesos several years ago. On
April 1, 2014, Johnson Company acquired the Outstanding Bonds of
Indiana Company. The entry made by Johnson Company to record the
purchase was:

Investment in Bonds 345,000

Cash 345,000
The face value of the bond is 400,000 and has unamortized premium of
23,780 on April 1, 2014 in the books of Indiana Company. The gain or
loss on extinguishment of Bond for the year 2014 amounted to?
a. 78,780 gain
b. 78,780 loss
c. 31,220 gain
d. 31,220 loss

29. On January 1, 2014, Fundamental Corporation acquired 90,000

shares out of the 120,000 outstanding shares of Technical Corporation.
On March 31, 2014, Technical Corporation acquired the outstanding
Bonds of Fundamental Corporation at its fair Value of 375,701. The
bond has a face value of 400,000 and a stated annual rate of 10%.
Fundamental Corporation issued the bond at an effective rate of 8%.
The bond has a remaining maturity of 4 years on March 31, 2014.
What is the gain or loss on extinguishment on bonds to be eliminated for
2014 Group FS?
a. 50,796 gain
b. 50,796 loss
c. 60,678 loss
d. 0

30. What is the consolidated interest expense during the year 2014?
a. 27,890.88
d. 25,589.82
c. 8,557.15
d. 34,228.65

31. Pepin Company owns 75% of Savin Corp. Savin’s net income in the
current year was 60,000. Savin also has 10,000 shares of 4% cumulative
preferred 10 par value stock outstanding. When Pepin purchased Savin,
the excess purchase price of 50,000 was attributable to a patent
having a life of 10 years. How much income is attributable to the
controlling interest?
a 45,000
.

b 41,250
.

c 37,250
.

d 38,250
 .

32.Saddle Corporation is an 80%-owned subsidiary of Paso Company.

On January 1, 2016, Saddle sold Paso a machine for 50,000. Saddle's
cost was 60,000 and the book value was 40,000. The machine had a
5-year remaining life at the time of the sale. Paso sold the machine to
outside parties on July 1, 2019 for 20,000. The gain on sale of the
machine to be reported in the consolidated FS 2019 is ?
a 4,000
.

b 6,000
.

c 5,000
.

d 8,000
.

33. On January 1, 2016, Parent Company purchased 8,000 shares of the

common stock of Subsidiary Company for 350,000. On this date,
Subsidiary had 20,000 shares of 5 par common stock authorized, 10,000
shares issued and outstanding. additional paid-in capital and retained
earnings were 150,000 and 200,000 respectively. On January 1, 2016,
any excess of cost over book value is due to a patent, to be amortized
over 15 years. Parent company uses cost method to accounts its
investment in subsidiary.

Subsidiary's net income and dividends for two years were:

2016 2017
Net income 50,000 90,000
Dividends 10,000 30,000

In the last quarter of 2017, Subsidiary Company sold goods to Parent

Company for 40,000. Subsidiary's usual gross profit on inter-company
sales is 40%. On December 31,2017 7,500 of these goods are still in
Parent's ending inventory.

The NCI interest at the end of 2016 is?

A. 77,900
B. 97,000
C. 95,000
D. 0

34. The NCI at the end of 2017?

A. 105,900
B. 113,900
C. 107,900
D. 0

35. Pinehollow acquired all of the outstanding stock of Stonebriar by

issuing 100,000 shares of its 1 par value stock. The shares have a fair
value of 15 per share. Pinehollow also paid 25,000 in direct acquisition
costs. Prior to the transaction, the companies have the following
balance sheets:

Assets Pinehollow Stonebriar

Cash 150,000 50,000
Accounts receivable 500,000 350,000
Inventory 900,000 600,000
Property, plant, and equipment (net) 1,850,000 900,000
Total assets 3,400,000 1,900,000

Liabilities and Stockholders' Equity

Current liabilities 300,000 100,000
Bonds payable 1,000,000 600,000
Common stock (1 par) 300,000 100,000
Paid-in capital in excess of par 800,000 900,000
Retained earnings 1,000,000 200,000
Total liabilities and equity 3,400,000 1,900,000

The fair values of Stone briar's inventory and plant, property and
equipment are 700,000 and 1,000,000, respectively. What is the amount
of goodwill that will be included in the consolidated balance sheet
immediately following the acquisition?

a 100,000
.

b 125,000
.

c 300,000
.
 d 325,000
.

36. On April 1, 2016, Paape Company paid 950,000 for all the issued
and outstanding stock of Simon Corporation. The recorded assets and
liabilities of the Simon Corporation on April 1, 2016, follow:

Cash 80,000
Inventory 240,000
Property and equipment (net of accumulated 480,000
depreciation of 320,000)
Liabilities (180,000)

On April 1, 2016, it was determined that the inventory of Simon had a

fair value of 190,000, and the property and equipment (net) had a fair
value of 560,000. What is the amount of goodwill resulting from the
business combination?
a0
.

b 120,000
.

c 300,000
.

d 230,000
.

37. Pinehollow acquired 80% of the outstanding stock of Stonebriar by

issuing 80,000 shares of its 1 par value stock. The shares have a fair value
of 15 per share. Pinehollow also paid 25,000 in direct acquisition costs.
Prior to the transaction, the companies have the following balance
sheets:

Assets Pinehollow Stonebriar

Cash 150,000 50,000
Accounts receivable 500,000 350,000
Inventory 900,000 600,000
Property, plant, and equipment (net) 1,850,000 900,000
Total assets 3,400,000 1,900,000

Liabilities and Stockholders' Equity

Current liabilities 300,000 100,000
Bonds payable 1,000,000 600,000
Common stock (1 par) 300,000 100,000
Paid-in capital in excess of par 800,000 900,000
Retained earnings 1,000,000 200,000
Total liabilities and equity 3,400,000 1,900,000

The fair values of Stonebriar's inventory and plant, property and

equipment are 700,000 and 1,000,000, respectively. What is the amount
of goodwill that will be included in the consolidated balance sheet
immediately following the acquisition?
a 300,000
.

b 100,000
.

c 200,000
.

d 240,000
.

38. Paro Company purchased 80% of the voting common stock of

Sabon Company for 900,000. There are no liabilities. The following book
and fair values are available for Sabon:

Book Value Fair Value

Current assets 100,000 200,000
Land and building 200,000 200,000
Machinery 300,000 600,000
Goodwill 100,000 ?

The machinery will appear on the consolidated balance sheet at ____.

a 600,000
.

b 540,000
.

c 480,000
.

d 300,000
.

39. Pinehollow acquired all of the outstanding stock of Stonebriar by

issuing 100,000 shares of its 1 par value stock. The shares have a fair
value of 15 per share. Pinehollow also paid 25,000 in direct acquisition
costs. Prior to the transaction, the companies have the following
balance sheets:

Assets Pinehollow Stonebriar

Cash 150,000 50,000
Accounts receivable 500,000 350,000
Inventory 900,000 600,000
Property, plant, and equipment (net) 1,850,000 900,000
Total assets 3,400,000 1,900,000

Liabilities and Stockholders' Equity

Current liabilities 300,000 100,000
Bonds payable 1,000,000 600,000
Common stock (1 par) 300,000 100,000
Paid-in capital in excess of par 800,000 900,000
Retained earnings 1,000,000 200,000
Total liabilities and equity 3,400,000 1,900,000

The fair values of Stonebriar's inventory and plant, property and

equipment are 700,000 and 1,000,000, respectively. What is the amount
of property, plant and equipment that will be included in the
consolidated balance sheet immediately after the acquisition?
a 2,570,000
.

b 2,750,000
.

c 2,850,000
.

d 2,650,000
.

40. Company has the following transactions during january of 2019.

 20,000 units in work in process as at 1 December: 20,000 of direct

materials and 40,000 of conversion costs (i.e. $10,000 direct labor
and 30,000 manufacturing overheads). 100% of the direct
materials cost and 40% of the conversion cost have been
incurred in last period on these units.
 200,000 units transferred in from production department during
the month: at a total cost of 555,000.
 Costs added included: direct materials of 22,000 and conversion
costs of 20,000.
 180,000 units transferred to finished goods.
  40,000 units in work in process as at 31 December: 100%
complete as to costs transferred-in, 80% complete as to materials
and 50% complete as to conversion costs.
The cost of ending WIP?
A. 116,750
B. 116,350
C. 116,680
D. None of the Above.

41. The cost of transferred out units?

A. 540,250
B. 540,100
C. 540,890
D. None of the above.

42. Company A has the following information during the month of

January 2019.

Material Price Variance 2,000 UF

Material Usage Variance 3,000 FV
Labor Rate Variance 45,000 F
Labor Efficiency Variance 53,000 UF
Standard Labor Rate 2.5
Actual Labor Cost 180,000
Variable OverHead Variance 10,000UF
Standard Variable Overhead Rate per Direct Labor 4
Hour

What is the actual variable overhead during January 2019?

A. 282,500
B. 285,200
C. 282,900
D. None of the Above

43. Acqua control Inc. Manufactures water pumps and uses standard
cost system. The standard factory overhead cost per water pump are
based on direct labor hours and are as follows:

Variable overhead (4 hours at 8 per hour)……………32

Fixed Over head (4 hours at 5* per hour) ……………..20

Based on a capacity of 100,000 direct labor hours per month.

The following information is available for the month of November?

 22,000 pumps were produced although 25,000 had been

scheduled for production.
 94,000 hours were worked at a total cost 940,000.
 The standard direct labor rate is 9 per hour.
 The standard direct labor time per unit is 4 hours.
 Variable overhead cost were 740,000.
 Variable overhead cost were 540,000.

The fixed overhead spending variance was

a. 40,000 UF
b. 70,000 UF
c. 460,000 UF
d. 240,000 UF

44. The variable overhead spending variance was

a. 60,000 F
b. 12,000 F
c. 48,000 UF
d. 40,000 UF

45. The variable overhead efficiency variance for November was

a. 48,000 UF
b. 60,000 F
c. 96,000 UF
d. 200,000 UF

46. The volume variance was

a. 60,000 UF
b. Cannot be determined
c. 0
d. 70,000

47. Company A has favourable labor efficiency variance of 10,000

during the month of January 2019. Variable overhead is applied base
on direct labor hours. The company also have

a. Favourable variable spending variance of 10,000.

b. Favourable variable efficiency variance of 10,000.
c. Volume variance of 10,000
d. Fixed spending variance of 10,000.

48. Company A has favourable labor efficiency variance of 10,000

during the month of January 2019. Variable overhead is applied base
on direct labor hours. The company also have
A. Favourable variable spending variance of 20,000.
B. Favourable variable efficiency variance of 20,000.
C. Volume variance of 20,000
D. Cannot be determined.

49. Forward Inc. which manufactures products P,Q and R form joint
process:

P Q R Total
Units Produced 4,000 2,000 1,000 7,000
Joint Costs 36,000 ? ? 60,000
Sales Value at ? ? 15,000 100,000
Split-off
Additional Cost if 7,000 5,000 3,000 15,000
Processed Further
Sales Value if 70,000 30,000 20,000 120,000
Processed Further

Assuming the used of sales value at split off point What was the sales
value at split off point for product P?
a. 58,333
b. 59,500
c. 65,000
d. None of the above.

50. Padyak Company owns 80,000 shares of Sirkulo company’s 100,000

shares outstanding acquired at book value. The December 31, 2011
consolidated statement of financial position consists of subsidiary net
assets of 600,000. On December 31, 2012, Padyak issues 25,000
additional shares of common stock for 175,000.

The consolidated shareholders equity as a result of this transaction will?

a. No effect, shareholders equity accounts of subsidiary are eliminate.

b. Increase 16,000
c. Increase 160,000
d. Increase by 175,000