Reference no: EM132819264
Question - Choose from the following choices: Show your solution for each.
Q1) ABC Company had 12,000 units of product A on hand at January 1, costing P25 each. Purchases of product A during the month of January were: Jan 10 - 17,000 units at P24; Jan. 19 - 22,000 units at P23; Jan. 29 - 7,000 units at P25.
A physical count on January 31 showed 22,000 units of product A on hand.
What is the amount of inventory at January 31 under the simple average method?
a) P520,740
b) P526,900
c) P520,000
d) P550,000
Q2) At the beginning of the year, accounts receivable balance is P227,000 and allowance for uncollectible accounts is P22,700. During the year, credit sales amounted to P5,065,000; collections on accounts totaled P4,836,000; accounts P150,000 were written off. What is the amount of uncollectible accounts expense for the year?
a) P157,900
b) P150,000
c) P30,600
d) P7,900
Q3) XZY Company's monthly net profit before taxes is P250,000, representing 10% of net sales. How will the cash purchase of merchandise for P500,000 invoice price be recorded in the purchase journal, freight terms FOB destination, freight collect P20,000, 2/7, n/30? Assume all parties involved are VAT registered and BSA Company uses voucher system.
a) Debit Merchandise Inventory P455,357.14; Debit Input VAT P54,642.86; Credit Accounts Payable P510,000.
b) Debit Merchandise Inventory P417,500; Debit Input VAT P52,500, Credit Accounts Payable P470,000.
c) None
d) Debit Merchandise Inventory, P437,500; Debit Input VAT P52,500; Credit Accounts Payable P490,000.
Q4) Employee A, hired by A Company on January 1, 2020, is receiving minimum wage and in his January 2020 payslip showed gross earnings P23,000 for basic wages and overtime pay. Deductions for SSS, Philhealth and Pag-ibig contributions were P440, P165, and P100, respectively. How much is the take home pay for January 2020?
a) P22,002.67
b) P21,861.67
c) P23,000.00
d) P22,295.00
Q5) ABC Company reported cash and cash equivalents at P1,300,000. In the notes to financial statement, Cash on hand, P366,000; Petty Cash fund P87,000; Cash in Bank A, 322,000; 180-day time deposit due next month, P250,000 and 5-year BSP treasury bills acquired 61 days before maturity, P275,000. How much is correct balance of cash and cash equivalents?
a) P1,300,000
b) P1,050,000
c) P775,000
d) P1,025,000
Q6) JRS Company had 12,000 units of product A on hand at January 1, costing P22 each. Purchases of product A during the month of January were: Jan 10 - 17,000 units at P23; Jan. 19 - 22,000 units at P24; Jan. 29 - 7,000 units at P25. A physical count on January 31 showed 22,000 units of product A on hand. What is the amount of cost of goods sold during January under the FIFO method?
a) P808,000
b) P842,760
c) P823,000
d) P874,000