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WorksheetsYear-Ender Quiz Bowl
Total questions: 25
Worksheet time: 15mins
It is the oldest Philippine Accounting Standard that has not yet been superseded by another standard.
PAS 1
PAS 2
PAS 16
PAS 41
Inventories are subsequently measured at
cost
cost +
net realizable value
lower of cost or net realizable value
What is the inventory costing method that is based on the assumption that costs should be charged against revenue in the order in which they were incurred?
FIFO
LIFO
Weighted Average
Moving Average
This inventory valuation method is not allowed by PFRS
FIFO
LIFO
Specific identification
All given are allowed by PFRS.
Direct materials + direct labor is (a)
Direct labor + overhead = (a) cost
Purchases less returns, discounts and allowances, plus freight-in is
Gross Purchases
Purchases
Net Purchases
Net Cost of Purchase
These rules are a set of 11 globally recognized standard trade terms created by the International Chamber of Commerce (ICC) to facilitate domestic and international B2B sales of goods.
(a)
What report or document is missing?
(a)
The periodic inventory system is used most commonly by companies that sell
High-priced, high-volume merchandise
Low-priced, high-volume merchandise
High-priced, low-volume merchandise
Low-priced, low-volume merchandise
The sum of direct materials, direct labor and factory overhead incurred during the period, excluding the work-in-process at the beginning of the period is called:
Cost of goods manufactured
Total costs placed in process
Manufacturing costs
Cost of goods sold
Which of the following is not an appropriate auditing procedure supporting the fairness of
financial-statement presentation?
Inspecting plant asset additions for existence
Recalculating accrued interest on notes payable
Examining invoices in support of legal fees recorded during the fiscal year
Reviewing the client's production quality control program
Effective controls relevant to purchasing of raw materials should usually include all of the following, except
Obtaining third-party written quality and quantity reports prior to payment for the raw materials
Determining the need for the raw materials prior to preparing the purchase order
Systematic reporting of product changes that will affect raw materials
Obtaining financial approval prior to making a commitment
The auditor’s primary objective in obtaining an understanding of the client’s controls over the purchasing function is to
Investigate the recording of unusual transactions regarding raw materials
Determine the reliability of financial reporting by the purchasing function
Observe the annual physical count
Ascertain that raw materials paid for are on hand
Heavy Manufacturing Company is in the business of making steel plates, forming heavy metal slabs and drilling and scoring metals. Recently, it upgraded many of its forming machines. There were five machines purchased on four different invoices. Unfortunately, one of the invoices was recorded twice, resulting in five invoices being recorded. The general balance-related audit objective affected by this activity is
Presentation
Existence
Completeness
Accuracy
For which of the following account balances are substantive tests of details least likely to be performed unless analytical procedures indicate the need to extend detail testing?
Payroll expense
Marketable securities
Research cost
Legal expense
Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
Reconciling vendor’s statements to the file of receiving reports to identify items received just prior to the balance sheet date
Examining unusual relationships between monthly accounts payable balances and recorded cash payments
Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports
Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to prior period
The physical count of inventory of a retailer was higher than shown by the perpetual records. Which of the following could explain the difference?
Inventory items had been counted but the tags placed on the items had not been taken off the items and added to the inventory accumulation sheets
Credit memos for several items returned by customers had not been recorded
No journal entry had been made on the retailer’s books for several items returned to its suppliers
An item purchased “FOB shipping point” had not arrived at the date of the inventory count and had not been reflected in the perpetual records
What is the ending inventory if the periodic FIFO costing alternative is used?
P 400
P 500
P 1,250
P 3,100
On December 12, Celine Company purchased an item of merchandise quoted and listed at P150,000 under the following terms: Trade discounts of 15%, 10%; 2/10, n/30. What is the invoice price of the merchandise?
P 112,500
P 114,750
P 127,500
P 150,000
The total raw materials consumed are P100,000. Total conversion cost is P200,000, work-in-process end is P30,000, costs of goods manufactured is P285,000. What is the work in process beginning?
P 10,000
P 15,000
P 30,000
P 45,000
The transportation expense of P20,000 paid to transport of goods sold under F.O.B destination, prepaid is a
Cost of Inventory
Cost of goods sold
Marketing costs
Factory overhead costs
Total purchase of raw materials at list price of P250,000; terms: 10%; 2/30, n/60. Freight of P10,000 was paid, F.O.B destination, freight collect. Subsequently, a portion of the total purchases with a list price of P10,000 was returned to the supplier. What is the increase in the amount of the raw materials available for use?
P 226,000
P 225,000
P 216,000
P 215,000
Total purchases of raw materials amounted to P350,000. The ending inventory of raw materials is P20,000 more than the beginning inventory. How much is the amount of raw materials put into process?
P 370,000
P 350,000
P 330,000
P 310,000
The factory payroll was paid with a total cash of P260,000, net of P4,000 withholding tax and P2,000 SSS premium. Eighty percent of the total salaries expense is for direct factory labor cost and 20% is for the indirect labor cost. What is the increase in the amount of the prime factory costs?
P 266,000
P 254,000
P 212,800
P 203,200
