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WorksheetsDifficult Level 1 Quiz bowl Accountancy Days
Total questions: 10
Worksheet time: 8mins
Burke Corporation has the following data for use of its machinery
Month Usage Cost
Jun 600 $750
Jul 650 775
Aug 420 550
Sept 500 650
Oct 450 570
Refer to Burke Corporation. Using the high-low method, compute the variable cost element.
1.02
0.98
1.31
1.19
Cryptocurrencies are the current trend since the COVID-19 pandemic began. In what standard does cryptocurrencies fall to?
PAS 16 – Property, Plant, and Equipment
PFRS 9 – Financial Instruments
PAS 38 – Intangible Assets
None of the above
An entity has outstanding ordinary shares and nonparticipating, noncumulative preference shares. The liquidation value of the preference shares is equal to the par value. The book value per ordinary share is unaffected by:
The declaration of a share dividend on preference shares payable in preference shares when the market price of the preference share is equal to the par value
The declaration of a share dividend on ordinary shares payable in ordinary shares when the market price of the ordinary shares is equal to the par value.
The payment of a previously declared cash dividend on the ordinary shares
A 2-for-1 split of the ordinary shares
The following information is available for Ford Company for its first year of operations:
Sales in units 5,000
Production in units 8,000
Manufacturing costs:
Direct labor $3 per unit
Direct material 5 per unit
Variable overhead 1 per unit
Fixed overhead $100,000
Net income (absorption method) $30,000
Sales price per unit $40
If Ford Company had used variable costing, what amount of income before income taxes would it
have reported?
30,000
(7,500)
67,500
None of these
Which of the following is considered optional or not required in the accounting cycle?
Preparation of financial statements
Posting transactions in the general ledger
Preparation of trial balances
Preparation of closing entries
SnarkMatic reported during the current year:
Beginning inventory 500,000
Net purchases 2,500,000
Net sales 3,200,000
A physical count at year-end resulted in an inventory of P575,000. The gross profit on sales had remained constant at 25%. The entity is suspected that some inventory may have been taken by a new employee. What is the estimated cost of missing inventory at year-end?
100,000
175,000
225,000
25,000
At the beginning of the current year, WEEBster Company bought machinery under a contract that required down payment of P100,000 plus 24 monthly payments of P50,000 each, for total cash payments of P1,300,000. The cash price of the machinery was P1,100,000. The machinery has a useful life of 10 years and residual value if P50,000. The entity used a straight-line depreciation. What amount should be reported as depreciation at the beginning of the year?
105,000
110,000
125,000
0
The Singer Company manufactures several different products. Unit costs associated with Product ICT101 are as follows:
Direct materials P 60
Direct manufacturing labor 10
Variable manufacturing overhead 18
Fixed manufacturing overhead 32
Sales commissions (2% of sales) 4
Administrative salaries 16
Total P140
What are the variable costs per unit associated with Product ICT101?
18
22
88
92
For its most recent fiscal year, a firm reported that its contribution margin was equal to 40 percent of sales and that its net income amounted to 10 percent of sales. If its fixed costs for the year were $60,000, how much were sales?
150,000
200,000
600,000
Can't be determined from the information given
At its present level of operations, a small manufacturing firm has total variable costs equal to 75 percent of sales and total fixed costs equal to 15 percent of sales. Based on variable costing, if sales change by $1.00, income will change by
0.25
0.10
0.75
None of these
