MAS(PROBLEMS)- Test Banks Questions AND ANSWERS

MAS(PROBLEMS)- Test Banks Questions 1. Based on the following, compute total owners' equity. Cash P 8,000 Total noncurrent liabilities P 0 Total assets P64,000 Retained earnings P16,000 Total contributed capital P12,000 Current liabilities P36,000 2. Based on the following, compute total noncurrent assets. Total current assets P600,000 Total current liabilities P240,000 Retained earnings P162,000 Total noncurrent liabilities P710,000 Total contributed capital P360,000 3. Based on the information provided, compute accrued wages payable at the end of 20X4. Accrued wages payable, beginning of 20X4 P 14,000 Wages expense for 20X4 P 45,000 Cash paid in 20X4 for wages P 42,500 Using the following data, find the missing items. Total assets, beginning of year . . . . . . . …………………………..P160 Total assets, end of year . . . . . . . . . . ……………………………..P240 Total liabilities, beginning of year . . . . ……………………………P120 Total owners' equity, end of year . . . . . . …………………………..P 60 Net income for year . . . . . . . . . . . ……………………………….. P 24 Additional investment during year . . . . . . …………………………P 16 Contributed capital, beginning of the year . ………………………P 30 4. Total owners' equity at the beginning of the year. 5. Total liabilities at the end of the year. 6. Retained earnings at the beginning of the year. 7. End-of-the-year retained earnings. 8. Dividends declared during the year. 9. Based on the following, compute total owners' equity. MAS(PROBLEMS)- Test Banks Questions Cash P 30,000 Total noncurrent liabilities P18,000 Total assets P126,000 Retained earnings P24,000 Current liabilities P56,000 10. Based on the following, compute total noncurrent assets. Total current assets P135,000 Total current liabilities P 70,000 Retained earnings P 47,500 Total noncurrent liabilities P182,500 Total owners' equity P125,000 11. Based on the information provided, compute accrued taxes payable at the end of 20X3. Accrued taxes, beginning of 20X3 P244,000 Taxes expense for 20X3 P760,000 Cash paid in 20X3 for taxes P750,000 12. Based on the information provided, compute prepaid supplies at the end of 20X5. Prepaid supplies, beginning of 20X5 P 10,000 Supplies expense for 20X5 P210,000 Cash paid in 20X5 for supplies P216,000 Using the following data, find the missing items. Total assets, beginning of year . . . . . . . ……..P1,050 Total assets, end of year . . . . . . . . . . ………..P1,200 Total liabilities, beginning of year . . . . ……….P 630 Total owners' equity, end of year . . . . . . ……..P 480 Net income for year . . . . . . . . . . . . ………….P 164 Additional capital invested during year . . . ……P 50 Contributed capital, beginning of the year . ….P 200 13. Total owners' equity at the beginning of the year. 14. Total liabilities at the end of the year. 15. Retained earnings at the beginning of the year. 16. End-of-the-year retained earnings. 17. Dividends declared during the year. MAS(PROBLEMS)- Test Banks Questions Using the following data, find the missing items. Total liabilities, beginning of year . . . . ………… P440 Total liabilities, end of year . . . . . . . . …………..P490 Total owners' equity, beginning of year . . . . ……P340 Total assets, end of year . . . . . . . . . . . ………….P950 Dividends declared during the year. . . . . . . ……..P 74 Additional capital invested during year . . . . ……..P 90 Contributed capital, beginning of the year . . ……P240 18. Total assets at the beginning of the year. 19. Total owners' equity at the end of the year. 20. Retained earnings at the beginning of the year. 21. End-of-the-year retained earnings. 22. Net income for year. 23. XYZ Company desires a profit of P120,000 and expects to sell 20,000 units. Variable cost per unit is P15 and total fixed costs are P160,000. The selling price must be a. P40. b. P30. c. P26. d. P20. 24. Contribution margin percentage is 30% and contribution margin per unit is P12. Which of the following is true? a. Variable cost per unit is P28. b. Return on sales is 12%. c. Selling price is P48. d. Variable cost percentage is 12%. 25. Contribution margin is 30% of sales. Profit is P80,000. Sales are P600,000. Fixed costs are a. P 90,000. b. P100,000. c. P160,000. d. P180,000. 26. Selling price is P100, unit variable cost is P68, and fixed costs are P400,000. Unit sales required to earn a P120,000 profit are a. 5,200 MAS(PROBLEMS)- Test Banks Questions b. 7,647 c. 13,700 d. 16,250 27. The tax rate is 40%. A company that wants a profit of P120,000 after taxes must earn how much before taxes? a. P 48,000. c. P200,000. b. P 72,000. d. P300,000. 28. Genco Company has a 30% contribution margin percentage and fixed costs of P30,000. To earn a 10% return on sales, Genco must have sales of a. P150,000. b. P100,000. c. P40,000. d. an amount that cannot be determined without more information. 29. Selling price is P40, unit variable cost is P24, and fixed costs are P400,000. Unit sales required to break even are a. 10,000. b. 12,500. c. 16,667. d. 25,000. 30. ABC's variable costs are 60% of total revenue. If fixed costs are P300,000, what is the break-even sales volume? a. P120,000 b. P180,000 c. P500,000 d. P750,000 31. Acme has sales of P200,000, fixed costs of P100,000, and a profit of P20,000. What is Acme's margin of safety? a. P 20,000 b. P 33,333 c. P100,000 d. An amount that cannot be determined without more information. 32. Machine A has fixed costs of P450,000 and a variable cost of P20. Machine B has fixed costs of P600,000 and a variable cost of P14. What is the indifference point, in units? a. 22,500 b. 25,000 c. 42,858 d. An amount that cannot be determined without more information. MAS(PROBLEMS)- Test Banks Questions 33. DJH Company has sales of P360,000, variable costs of P216,000, and fixed costs of P150,000. To earn a 10% return on sales, DJH must have sales of a. P375,000. b. P440,000. c. P470,000. d. P500,000. 34. DJH Company has sales of P400,000, variable costs of P240,000, and fixed costs of P150,000. What is the break-even sales volume? a. P150,000 c. P390,000 b. P375,000 d. P550,000 35. Alvarez Inc. sells three products with the following results: X Y Z ------ ------ ------ Sales P10,000 P20,000 P30,000 Variable costs 4,000 12,000 15,000 What is the weighted average contribution margin percentage? a. 48.3% b. 50.0% c. 51.7% d. Cannot be determined with the information given. 36. Scottso Enterprises has fixed costs of P120,000. At a sales volume of P400,000, return on sales is 10%; at a P600,000 volume, return on sales is 20%. What is the break-even volume? a. P160,000 b. P210,000 c. P300,000 d. An amount that cannot be determined without more information. 37. Samson Inc. has a contribution margin percentage of 35%. If fixed costs are P630,000, what is the break-even point? a. P 220,500 c. P 969,231 b. P 409,500 d. P1,800,000 Foris Company's product sells for P16 and has a variable cost per unit of P12. Fixed costs are P120,000. 38. Compute the break-even point in peso. 39. Compute the number of units Foris must sell to earn a P30,000 profit. MAS(PROBLEMS)- Test Banks Questions 40. Foris has a target profit of P36,000 and expects to sell 30,000 units. Compute the selling price Foris must charge to earn the target profit. 41. Foris wants to keep its selling price at P8 per unit and earn a 10% return on sales. Calculate the number of units Foris must sell to meet the target. Dennis Company sells a product for P20, variable costs are $8 per unit, and fixed costs are P32,000. 42. What is Dennis' break-even point in units? 43. Find the selling price that Dennis must charge to earn an P8,000 profit selling 1,600 units. 44. Dennis is considering new equipment that would increase fixed costs by P2,000 while reducing unit variable costs by P1.60 per unit. Find the sales level where Dennis is indifferent between the two cost structures. Stout Company sells three products. Planned results for next year follow. Product A B C ---- ---- ---- Selling price P10 P 8 P 4 Variable cost 4 6 1 --- --- --- Contribution margin P 6 P 2 P 3 === === === Sales mix in dollars 25% 25% 50% Fixed costs are P500,000. 45. Compute the weighted-average contribution margin percentage. 46. Compute the sales (in P) required to earn a P100,000 profit. 47. Suppose now that the sales mix, in UNITS, is 25%, 25%, 50%. Determine the weighted-average contribution-margin per unit. 48. Determine the total unit sales needed to earn P100,000. Maple Company has sales of P550,000 and has variable costs of P330,000. Fixed costs are P180,000. 49. Compute the break-even point. MAS(PROBLEMS)- Test Banks Questions 50. Compute Maple's sales to earn a P50,000 profit. 51. Compute the sales Maple would need to earn a 10% return on sales. Acme Company's product sells for P80 and has a variable cost per unit of P60. Fixed costs are P400,000. 52. Compute the break-even point in peso. 53. Compute the number of units must Acme sell to earn a P100,000 profit. 54. Acme has a target profit of P152,000 and expects to sell 30,000 units. Compute the selling price Acme must charge to earn the target profit. 55. Acme wants to keep its selling price at P40 per unit and earn a 10% return on sales. Calculate the number of units Acme must sell to meet the target. Craik Company sells a product for P25, variable costs are 12 per unit, and fixed costs are P180,000. 56. What is Craik's break-even point? 57. Find the selling price that Craik must charge to earn a P40,000 profit selling 16,000 units. 58. Craik is considering new equipment that would increase fixed costs by P20,000 while reducing unit variable costs by P2.00 per unit. Find the sales level where Craik is indifferent between the two cost structures. Mound Company has a before-tax return on sales of 9% and a 25% margin of safety. Current sales are P800,000. 59. Calculate break-even sales. 60. Find Mound's variable cost percentage. Cranmore Company sells three products. Planned results are as follows. Product P Q R --- --- --- Selling price P20 P8 P6 Variable cost 8 6 3 --- --- --- Contribution margin P12 P2 P3 === === === MAS(PROBLEMS)- Test Banks Questions Units sold 10,000 20,000 70,000 Fixed costs are P200,000. 61. Determine the weighted-average contribution-margin per unit. 62. Determine the break-even point in units sold. 63. Compute the total unit sales required to earn a P75,000 profit. Oak Grove Inc's product sells for P32 and has a variable cost per unit of P20. Fixed costs are P120,000. The effective tax rate is 40%. 64. Compute the break-even point. 65. Compute the number of units Oak Grove must sell to earn a P30,000 after-tax profit. 66. Oak Grove has an after-tax target profit of P36,000 and expects to sell 20,000 units. Compute the selling price Oak Grove must charge to earn the target profit. Eleva Company has sales of P350,000, variable costs of P200,000, and fixed costs of P125,000. Eleva has an effective tax rate of 40%. 67. Compute the break-even point. 68. Compute Eleva's sales needed to earn a P75,000 after-tax profit. 69. Compute the sales Eleva would need to earn a 15% after-tax return on sales. 70. Ogden Company had P300,000 overhead cost at 20,000 machine hours, P320,000 overhead cost at 25,000 hours. Variable overhead cost per machine hour is a. P 4.00. b. P12.80. c. P15.00. d. some other number. 71. Sacramento Company had P400,000 overhead cost at 50,000 machine hours and P460,000 overhead cost at 60,000 hours. Total fixed overhead is a. P 60,000 b. P100,000 c. P120,000. MAS(PROBLEMS)- Test Banks Questions d. P320,000. 72. DSP Company earned P100,000 on sales of P1,000,000. It earned 130,000 on sales of P1,100,000. Variable costs as a percentage of sales are a. 30%. b. 40%. c. 70%. d. 90%. 73. DSP Company earned P100,000 on sales of P1,000,000. It earned P130,000 on sales of P1,100,000. Total fixed costs are a. P0. b. P200,000. c. P420,000. d. P900,000. 74. DJH has an average unit cost of P20 at 20,000 units and P13.75 at 40,000 units. What is the variable cost per unit? a. P5.00 b. P6.25 c. P7.50 d. An amount that cannot be determined without more information. 75. DJH has an average unit cost of P20 at 20,000 units and P13.75 at 40,000 units. What is the total fixed cost? a. P125,000 b. P250,000 c. P400,000 d. An amount that cannot be determined without more information.