Collegeof Accountaney vo Suyaenn,Posecennmieaeneuet ‘Accounting 208 MAS Review | A 1 snaneropeite rater ee between wo dos tthe rls Corporation a be deter rome Fabseatingdvision: Assembling dvision: Markt pre of subassembly ps0 asain eon og L/ Naiablecost of sabassembly— B20- + ae eas capacity 11000 ‘Wet sthe natural bargaining range forthe two dvsons ciefenl zen tS «Any amount less than P50 copreen oes n7e 14.5015 the ont acceptable price ‘the Ast sion of Gol Company produces Par thats tobe wsed by Golda # Key pa data on Part areas follows: emulate Mee Wea ‘Selling price unit Pago Peta pnien Tec uteeeD Iotemnee Variable cost er unit Peo v Fixed cost per unit Pee ‘ased on 40,000 units capacity per anqum Gols 2nd division i introducing 2 new product that wil use Prt 2. An outside supplier has quoted 2nd dvsion a price of P 196 per unt. This represents the usual P 100 priceless 2 quantity discount due tothe large number of 2nd dison's ‘requirement. Ifthe 2nd division would buy 15,000 units of Pat from the Ast division, the effect onthe corporate-profits rin ks products, Costs and sales would be: A. Increase by P 240, 000, {Increase by P 210, 000, // Increase by P 1, 500, 000 Dresbuce by P 60,000 F. P2235 Division Pac ofthe Manny Company makes apart that can either be sold to outside costumers or transferred internally to division Qui for further processing. Annual data relating to this part areas follows: 7-707" 1CT=IST <5 fnnual production copay 20,000 units © Selng price ofthe tem per unit to outside customers 735 oe Variable cost per unit, P23) 5 g Fined cost perunit 75 ° Division Quiao of the Manny Company requires 15, 000 units per year and is paying now an outside supplier P 33 per unit. ‘outside costumers demand 70, 00 units, then the lowes limit on te transfer price that Division Pac shoul charge ec ~ Division Quiao for each of the 15,000 units needed by the Quiao would be: 7.27 EA. Floyd Co. plans to se 200 units using P20, 000 of assets. The company Incurs total costs of P 8000 for these units. fa return on investment of 10% targeted, how much shouldbe the sling price? PG 197 «ey a P33 P28 E.PeD cx 3.c001 8.00 b. P40 4. Cannot be determined from given information © pS, Gayweather Company presented the folowing information: vere ee 4. 0Ty-aTy / Units to be sold 0,000 units zy» / Total costs of the units 550, 000 tenes Fixed capital investments P1,000,000 tear Variable capital on sales om OS seer What would be the selling price in order to produce a 20% return in investment? a a. P15.652 ©. P165254 wn ts neeaea by the Quiao would be: 7.29 Floyd Co, plans to sell 200 units using P 20, 000 of assets, The company incur veal return on investment of 1096s targeted, how much shouldbe the selling price? costs of P 8000 for these units. fa a. P33 P28 EP Pao 4. Cannot be determined from given information ‘Gayweather Company presented the following information: ; Units tobe sold 50,000 units oy) «" Total costs of the units P50, 000, : Fixed capital investments 1,000, 00| Variable capital on sales 20% \What would be the selling price In order to produce a 20% return in investment? a. 8,P15,.652 P3625, bo b.P1s.2s6 ares vision As currently operating at SO% capacity. It produces a single product and sell alts production to outside costumers or P13 per nk. Variable costs ae Pp ny an ae cots are PS per unitate caren rodent Dison 8, which current purchases ths proc rom anode supple orp per un wou to puree ree form Divsion A. Dison Awil operate a ON capac to meet outside costumers and Dison B demand What the minimum price that Division A should charge DNsion 8 fr this produc? 77,00 per unite. 12.00 pean P2040 per unit. 33.00 per unt The AAA Division of company, which operating at apa, produces and sels. 000, units of eetaneecone component ina perfectly competitive market. Revere and cot data ae as follows Sales P 0, 000 poo W8eO > we Variable cot 34, 000 Feed costs 12,000 The minimum transfer price that shouldbe charged tothe BBB Dison ofthe sare company fr each component a P1200 &P.46, 00 b. P34.00 @P 50.00 ‘Sapphire Company has two service departments and two producing departments. Square footage of space provided by each department flows Custodiatservices} 000 f. oo oe General administration 3,000 f. © 9 Producing department A 8,000 ft. ao Producing department 8 S000, CIAY SOO oe 5 aoc 20,000 =The ine costs of Custodio Servies are allacated onthe bass of square footage of $2 38, 000 during @ given period, the amount of cost allocated to general Administration Po 5,700 nese Conpany hs one serve eprint 23, and tn opera dope, C © tater scro uedepoercon a oats ye ares eto No tine fda vara sence department es} Gorse en ass alate 7, 00m cost MAES! AL yy Te ancunt oft otc an eae aoe as 2 P7,200 b. P 12,400 C10. Sedimentary Co. has two service depacane follows: Du Direct costs Services performed by Dept. A Services performed by Dept. & Department Xs: costs are budgeted at» petit would be: inder the direct method tre, o00 ag Al and 62. 30% of H123's service Boer scat aicon made bet Gee) =a acre @P 16, 800 Service Departments AB Artoh By 400 Pgog BR 24 20% 40% 30% eo Sedimentary uses the reciprocal method to allocate service department costs, The service depatiment gos allocated to Ea ea poke Sat Grea Dax suite Sas a.P.600 b.P 680 1L. Myrth Co. reported these data at year-end. Pre-tax operating income 1d. P36 aay sore 4,000,000 Currentliabliies P2,.000,000 * Current assets 00,000 Longer abilities 5,000,000 Long-term assets ~4 <6, 000,000 Assuming a tax rate of 255 and a weighted average costo capital (WACC) of 9%, what is Myrrh Company’s economic value- ss eg en a @ P 1,380, 000 : : — ©. P44, 830, 000 b. P1,620,000 aun 180,090 4. P3, 000, 000 Jade Co's industrial photo finishing dvision VVV incurred in the following costs and expense in 2013: oo ee Variable Fixed x . eon “dgnece) Direct materials 200, 000 Fe gasoe? Direct labor 150, 000 cu Gee00 Factory overhead _ 70,000 42,000 General, selling and administrative 30,000. 48,000 TOTAL During 2013, VWV produced 300, 000 ur of industrial photo-orints. which were sold for P2. 0 earh Iada’s inuactmant in VAN winecos pata [WACC) OF, wnat EN Lamps eanamve ae aed (ovale x era @ F300, 000 ma 91,830,000 P4620, 00 v 4.0 3,000, 000 ae C's rt photo ising slon VW Ince inthe ftowing east and expend in 2013, a Diet materi 209,000 tf Diet nbor “50,00 A Factory overhead 70,000 42,000 ‘Genera sling snd administrative 30.000, ‘8.000 ToraL 350,000, During 2033, WV produced 300, 00 uns of indus phot pits, which were cold fr Pa 0 ch, ad's investment in WV was £500,000 700, 000 tansy 1, 2013 an December, Pl spec Ine mermoly pues nereston veer 1sWo everage invested capita, B22 Forthe yearended December 31,2013, Ww etumon investment war °° “Sx 2 150% pry ° ei50%) & soo 13. Kime hte néoperating income was, 0 ad that average inated apa was? 00,00, Forth yer ended December 3, 2013, Wa resin name (os wan pearetic) 2. P150, 000 (945,000) gat -eanin m5 (30,000) (agzen P60, 000 20° {B34 Frankincense Co. isa computer service center For the month of May, Frankincense fad the following operating statist ‘Sales 450,000, “otal aeete 500,000 os. 05 =c24 yect 9 Shartholders equity 200,000 oes crn ver) Operatingincome P25, 000, Net proitatertaxes 8,000 Cost of eapital o% cea Based onthe above information, which one ofthe following statement is correct? ae 3g. Retum on investment of Retum on investment of 1.6% Residual income of 5, 000) 4. Residual income of (P22, 000) "Mr. Respond Sy isthe generat manager of 10 Divisio, and his performance is measured using the residual income method. se CC” tte Spravevng he folowing forecasted tfermeton rhs ciston or ene year ‘Sategory Amounts iesemee ring ee sexsooom ane a orm|em Paondenipnet —g7a0G00” Felene SEER te npted ees 19 nde cl ada hsm 223 0 Wheto hae oben owt ahve te rtd etl come? tn, 000 25 50,000 nee. 725,655,000 P5356 Aproject coming? 18,000 wil produce te folowing anol cash benefits and sahage'vahe: ‘brant ae ean Gapurigcns Ses fomaldowesion 300 OE ay Income tax, 46% Lo ate ncmetat nal nae ert 15600 , a, 2.P30,000 .P40,000 fey ances LO 2b