Scribd
Upload
434 views2 pages

UC

The contract provides services over 4 years for $550,000. At the end of 2010, 30% of the contract is complete. Revenue to be recognized for 2010 is 30% of $550,000, or $165,000, since costs of $152,000 incurred to date are recoverable.

Uploaded by

John Alden Natividad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
434 views2 pages

UC

The contract provides services over 4 years for $550,000. At the end of 2010, 30% of the contract is complete. Revenue to be recognized for 2010 is 30% of $550,000, or $165,000, since costs of $152,000 incurred to date are recoverable.

Uploaded by

John Alden Natividad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

UC: AS Easy #10

On 1 January 2010, Adventure Company signs a four-year fixed-price contract to provide services for a customer. The contract
value is P550,000. At 31 December 2010 the contract is thought to be 30% complete. Costs to complete the contract cannot be
reliably estimated and costs incurred to date of P152,000 are recoverable from the customer. What is the revenue to be recognized
in profit or loss for the year ended 31 December 2010?

Average #6
Information on Divines direct material costs for May is as follows:
Actual quantity of direct materials purchased and used 30,000 lbs.
Actual cost of direct materials P84,000
Unfavorable direct materials usage variance P 3,000
Standard quantity of direct materials allowed for May production 29,000 lbs

Average #7
In preparing the bank reconciliation on December 31, 2014, Case Co provided the following data:
Balance per book 3,800,000
Deposit In transit 520,000
Amount erroneously credited by bank to Cases account 40,000
Bank service charge for December 5,000
Outstanding checks 675,000

Average #8
Aguisanda Co uses a predetermined FOH application rate based on direct labor cost. For the year ended December 31, 2015, some
budgeted and actual data are as follows:

Factory OH: Direct Labor Cost: Direct Labor hours:


Actual, 310,000 Actual, 210,000 Actual, 26,000
Budget, 300,000 Budget, 200,000 Budget, 25,000

Difficult #1
An investment project is expected to yield $10,000 in annual revenues, has $2,000 in fixed costs per year, and requires
an initial investment of $5,000. Given a cost of goods sold of 60 percent of sales, what is the payback period in years?

Difficult #2
The objective of PAS 1 Presentation of Financial Statements is to prescribe the basis for presentation of general purpose
financial statements. What 2 things do the objective ensures?

Difficult #3
A written request and acknowledgement requiring a letter reply only in the event of a discrepancy

Difficult #4
Bruce Co owns 80% of Lee Corps common stock. During October 2012, Lee sold merchandise to Bruce for 100,000. At
December 31, 2012, one half of the merchandise remained in Bruce inventory. For 2012, gross profit percentages were
30% for Bruce and 40% for Lee. The amount of unrealized intercompany profit sharing in ending inventory at December
31, 2012 that should be eliminated in consolidation is:

Difficult #5
It protects buyers of real estate on installment payments against onerous and oppressive conditions. It is also known as
RA No. 6552.
Difficult #6
On June 30, 2007, COLT INC. had outstanding 10% P250,000 face amount 15 year bonds maturing on June 30, 2017.
Interest is paid on June 30 and December 31, and bond discount and bond issue costs are amortized on these dates. The
unamortized balances on June 30, 2007 of bond discount and bond issue costs were P13,750 and P5,000 respectively.
COLT INC. reacquired all of these bonds at 96 on June 30, 2007 and retired them. Ignoring income taxes, compute for
the gain or loss on bond retirement.

Difficult #7
Budgeted sales for Knox Inc. for the first quarter the year are shown below:
JANUARY FEBRUARY MARCH
UNITS: 35,000 25,000 32,000

The company has a policy that requires the ending inventory in each period to be 10 percent of the following period's
sales. Assuming that the company follows this policy, what quantity of production should be scheduled for February?

Difficult #8
Schneider Inc. had the following information relating to 2011:
Budgeted FOH 74,800
Actual FOH 78,300
Applied FOH 76,500
Estimated labour hours 44,000
If Schneider decides to use the actual results from 2011 to determine the 2012 overhead rate, what will the 2012
overhead rate be?

Difficult #9
It refers to the procedure adopted by the mortgagee to terminate the rights of the mortgagor on the property
mortgaged and includes the sale of the property.

Difficult #10
In audit of a medium-sized manufacturing concern, which one of the following areas can be expected to require the
least amount of audit time?
a. Owners equity
b. Assets
c. Revenue
d. Liabilities

CLINCHER
1. BLT: It is the deprivation of the vendee of the whole or a part of the thing sold by virtue of a final judgement based on
a right prior to the sale or an act imputable to the vendor.
ANSWER: EVICTION
2. BLT: It is the doctrine to the effect that the separate personality of a corporation may be disregarded it such entity is
used to defeat public convenience, justify a wrong, protect fraud, or defend a crime.
ANSWER: DOCTRINE OF PIERCEING THE VEIL/CORPORATE FICTION
3. FAR: What specific standard governs property, plant and equipment?
ANSWER: PAS 16

You might also like