Cpar 95 Afar First PB Answer Key
Cpar 95 Afar First PB Answer Key
Cpar 95 Afar First PB Answer Key
SOLUTIONS
1. B
2. A
Revenue recognition:
Construction of stall (500,000 x 90%) 450,000
Delivery of 8,000 units of materials (200,000 x 6/8) 150,000
Right to access trade-name (100,000 x 1/5) 20,000
Revenue from initial franchise fee 620,000
3. B
Unearned revenue:
Construction of stall (500,000 x 10%) 50,000
Delivery of 8,000 units of materials (200,000 x 2/8) 50,000
Right to access trade-name (100,000 x 4/5) 80,000
Unearned revenue 180,000
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4. A
5. A
6. D
7. C
8. B
9. C
10. A
NOTE: Since the billed price percentage last year 2023 (125%) and the billed price percentage
this year 2024 (220%) are not the same, therefore it will affect the computation of the EI from
the home office merchandise at Billed Price because we will apply the concept of FIFO upon
sale of the merchandise. The cost of goods sold at cost (321,500), under the FIFO concept,
means this amount of merchandise sold will first be exhausted from the BI from home office
merchandise at cost (360,000). Thus, 38,500 (360,000 - 321,500) worth of merchandise are still
part of the EI from home office merchandise at cost (276,000). The breakdown of the total EI
from home office merchandise at cost (276,000) is 38,500 that came from the BI and the
remaining 237,500 that came from the shipments from HO. To compute correctly the EI from
home office merchandise at Billed Price, we will use 125% for the 38,500 worth of merchandise
from BI and 220% for the 237,500 worth of merchandise from shipments from HO.
11. B
12. A
13. B
14. C
15. D
Sales (364,500 x 65%) 236,925
Sales discount (82,175 ÷ 95% x 5%) (4,325)
Net sales 232,600
Cost of sales (291,600 x 65%) (189,540)
Gross profit 43,060
Rent expense (70,200 x 3/12) (17,550)
Advertising expense (4,650)
Utilities expense (6,300)
Depreciation expense (11,000 x 15% x 2/12) (275)
Sample expense (8,400 x 3/7) (3,600)
Net income of the agency for the 3 months ended August 31, 2024 10,685
16. C
17. B
18. B
19. B
20. D
21. B
22. D
23. C
24. B
25. C
26. A
27. C
Approximate NRV:
X: (75 - 35 - 10) x 1,500 45,000
Z: (112.5 - 50 - 30) x 2,200 71,500
116,500
28. A
Allocation table:
Admin Personnel A B C
Admin (based on Asset value) - 300/925 150/925 75/925 400/925
Personnel (based on No. employees) - - 15/30 5/30 10/30
Admin Personnel A B C
Direct OH costs 450,000 175,000 350,000 100,000 125,000
Admin (based on Asset value) (450,000) 145,946 72,973 36,486 194,595
Personnel (based on No. employees) - (320,946) 160,473 53,491 106,982
Total - - 583,446 189,977 426,577
29. C
30. A
31. A
32. D
33. C
BI units 5,000
Transferred-in units 50,000
EI units (2,000)
Completed units 53,000
Alternatively:
Transferred-in Direct materials Conversion
Completed 53,000 53,000 53,000
EI:
T-in: (2,000 x 100% complete)
DM: (2,000 x 0% complete) 2,000 - 1,400
CC: (2,000 x 70% complete)
NOTE: Since All of the materials were added at the end of the process, it means it is 0%
complete as to Ending inventory. Transferred-in is always 100% complete. Under the weighted
average method the beginning inventory is always accounted 100% in the EUP schedule.
EI Cost:
T-in: (2,000 x 2.50) 5,000
CC: (1,400 x 1.75) 2,450
7,450
34. B
Conversion
BI: (5,000 x 60% to complete THIS YR) 3,000
Started and completed 48,000
EI: (2,000 x 70% complete) 1,400
52,400
Alternatively:
Conversion
Completed 53,000
EI: (2,000 x 70% complete) 1,400
BI Last year: (5,000 x 40% complete LAST YR) (2,000)
52,400
35. D
Direct materials
BI: (5,000 x 100% to complete THIS YR) 5,000
Started and completed 48,000
EI: (2,000 x 0% complete) -
53,000
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Alternatively:
Direct materials
Completed 53,000
EI: (2,000 x 0% complete) -
BI Last year: (5,000 x 0% complete LAST YR) (-)
53,000
Direct materials
Current Period Cost 51,250
÷ 53,000
Cost per EUP 0.97
36. D
37. C
38. C
39. A
40. D
41. B
42. D
43. A
44. B
45. C
46. D
47. C
50. C
1,050,000 (total contributed capital) - 990,000 (total agreed capital) = 60,000 (revaluation
downward). 990,000 / 3 = 330,000 (credited to RZ).
420,000 - 330,000 = 90,000 (bonus to old partners). 30,000 ( net increase to old partners).
30,000 x 30% = 9,000 + 315,000 = 324,000.
51. B
1,050,000 (total contributed capital) - 1,500,000 (total agreed capital) = 450,000 (revaluation
upward). 1,500,000 / 3 = 500,000 (credited to RZ).
420,000 - 500,000 = 80,000 (bonus to RZ) . 370,000 ( net increase to old partners).
370,000 x 70% = 259,000 + 315,000 = 574,000.
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52. B
53. A
54. D
55. B
56. C
57. A
58. B
59. B
60. C
61. C
K L M
Interest 300,000 750,000 450,000
Salary 360,000 - 270,000
Remainder 700,000 1,750,000 1,050,000 (1,750,000 / 50%)
Share in NI 1,360,000 2,500,000 1,770,000
Capital, beg 2,000,000 3,000,000
Withdrawal (500,000) (200,000)
2,860,000 4,570,000
62. D
63. A
1,374,000 - 120,000 - 450,000 = 804,000 (net free assets) / [1,400,000 + 10,000] = 57.02%
64. B
65. D
Cash beg = 18,500 (estate equity) + 310,000 (liabilities) - 206,900 (non cash assets) 121,600.
Cash end = 12,450 (estate deficiency) - 60,800 (liabilities) - 36,500 (non cash assets) 11,850.
121,600 - 11,850 = 109,750.
66. A
CP 180M
TEC (210)
Anticipated loss (30) x 100% = (30M)
67. D
CP 180M
TEC (198)
Anticipated loss (18M) x 100% = (18M)
68. A
69. B
CP 180M 180M
TEC (200) (169)
EGP (20M) 11M
100% 84%____
RGP to date (20M) 9,240,000
20,000,000
29,240,000
70. D
CP 180M 180M
TEC (169) 171
EGP 11M 9M
84%____ 100%___
9,240,000 9,000,000
(9,240,000)
(240,000)
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