iS CRC-ACE The Professional CPA Review Schoo! ain 3 vtaroman id, 879 P Campa St ce apa Sample, Man 1B (02) 738 6901 / 735 9031 0922 064 0191 ‘eri a er ace@yahoo com Baul Rude! Big, V, Lower Mabir cor Diego lang, Baguio Cy “/F CCAM Bldg, Monteverde St. Davag Cy ‘2 (074) aaz-1440 / 0322-8499196 ‘at (082) 289-9605 / 0925-7272223 ADVANCED FINANCIAL ACCOUNTING & REPORTING MAY 2017 BATCH FINAL PRE-BOARD EXAMINATIONS gap ge——g- ag APRIL 28, 2017; 320-630PM INSTRUCTIONS: Select the correct answer for each of the following questions. Mark only one answer for each item by Shadinig, the corresponding letter of your choice on the answer sheet provided. STRICTLY NO ERASURES ALLOWED: Use Pencl No. 2 only. 1. The matters generally dealt with in a joint arrangement contract include the 1 ow OW > activity, duration and reporting obligations“ Yes Yes Yes Yes capita, contribution of the venturers Yes Yes Yes No > sharing of the output, expenses orresults. No Yes Yes Yes > voting rights of the venturers No No Yes. No A. oh ct Bo DOV Which of the following statement enue TA The intercompany profit in invertory trensfer between affiliates is computed by multiplying the inventory held by the buying affiliate whic was acquired from the selling affiliate by the gross. profit rate based on sales of the buying afiliate. B. The income and expenses of a subsidiary are included in the consolidated: financial statements from the acquisition date D. withholding tax Hs Accounts payable 000, Due to BIR. 400,000, Cash = Collecting officer 3,600,000 PAGE 3 40,000,000 5 8 Te sToNeRich.constuston Company ws the lowest bidder on an ofc buling constuction contac. The contrac bid was.P Tamil, wih a estnated costo complete the project of P40 millon. The contact period was 34 mons sartng Jansary 2015 The company vses the comtocast memos of stating Eamings,Becaure of changes quests bythe customer th contact pie nes acjstes Sownwars 1 P&S milion on January, 2014 A record of construction activities for the years 2013-2016 follows. (in millions) 2013 2014 2015 2016 ‘Actual cost-current year P25 P3300 Pat : Progress billings 24 31 13 - Cash receipts 18 30 40 PT Estimated costs to complete 35 4 - > Compute the gross profit (loss) realized in 2014, ‘A P(1.360) milion 8. P 2.806 million C. P 3.317 million D. P 4.167 million Items 10 & 11 are based on the following information: Lakewood Pharmaceutical Comany manufactures a tablet for allergy sufferers. All ingreaients are ‘added at the beginning of the Blending Operation. Conversion costs flow uniformly throughout the process. Tabulating and Coating are operations downstream (rom Blending, Information on the Blending Operation for October is as follows Workin Process - Blending Operations October 1, balance (100,000 units, Completed and transferred 40% complete for conversion costs) 151,780 to Tabulating Direct materials added (1,000,000 units) 1 310,000 "Units =? Direct labor cost 2 Costs-? Factory overtiead (applied at 180% (of direct labor cost) ‘October 31, balance (200,000 unit 70% complete for conversion costs)? ‘The October 1 balance consists ofthe following cost elements: Direct materials P 128,000, Direct labor 8.800 Factory overhead 14.960 Total costs 751.260 SETB