Accounting Questions Here...

[Larry Tan]

Question for the Day:
Cost Behavior - Splitting Mixed Costs & Step Fixed Costs

Bradley Co. budgets its total production costs at $220,000 for 75,000 units of output and $275,000 for 100,000 units of output. Since additional facilities are needed to produce 100,000 units, fixed costs are budgeted at 20% more than for 75,000 units. What is Bradley's budgeted variable cost per unit of output?

Answer. $1.10
Source: Gleim

[20jerome09]

Topic: Finance Lease
Subject: FA2

Can anyone give me illustration or explain about these criterias wherein the lease will be classified as finance lease. Pasensya na pero kelangan ko na ngayon malinawan kahit sa pinaka maliit na detail ng libro.

First: "The present value of the minimum lease payment amounts to substantially all of the fair value of the leased asset at the inception of the lease. Under American standard, substantially all means at least 90% of the fair value of the leased asset."

Second: "Gains or losses from the fluctuation in the fair value of the residual accrue to the lessee"

[20jerome09]

Topic: Finance Lease
Subject: FA2

Can anyone give me illustration or explain about these criterias wherein the lease will be classified as finance lease. Pasensya na pero kelangan ko na ngayon malinawan kahit sa pinaka maliit na detail ng libro.

First: "The present value of the minimum lease payment amounts to substantially all of the fair value of the leased asset at the inception of the lease. Under American standard, substantially all means at least 90% of the fair value of the leased asset."

Second: "Gains or losses from the fluctuation in the fair value of the residual accrue to the lessee"

Nakuha ko na poh yung first yung second na lang poh. Thank you.

[thomasianCPA09]

Question for the Day:
Cost Behavior - Splitting Mixed Costs & Step Fixed Costs

Bradley Co. budgets its total production costs at $220,000 for 75,000 units of output and $275,000 for 100,000 units of output. Since additional facilities are needed to produce 100,000 units, fixed costs are budgeted at 20% more than for 75,000 units. What is Bradley's budgeted variable cost per unit of output?

Answer. $1.10
Source: Gleim

sir, pasagot uli. wala akong magawa, eh.

Y = a + bX

75,000: 220,000 = a + 75,000b
100,000: 275,000 = 1.2a + 100,000b

b = 1.1

[Larry Tan]

Question: Variable Costing & Absorption Costing
40. STU Company predicted that factory overhead for 2001 and 2002 would be P60,000 for each year. The predicted and actual activity for 2001 and 2002 were 30,000 and 20,000 direct labor hours, respectively.
2001 2002
Sales in units 25,000 25,000
Selling price per unit P10 P10
Direct materials and direct labor per unit P 5 P 5
The company assumes that the long-run production level is 20,000 direct labor hours per year. The actual factory overhead cost for the end of 2001 and 2002 was P60,000. Assume that it takes one direct labor hour to make one finished unit.
When the annual estimated factory overhead rate is used, the gross profits for 2001 and 2002, respectively, are
a. P75,000 and P75,000
b. P125,000 and P125,000
c. P75,000 and P55,000
d. P75,000 and P50,000

Answer is C.

[20jerome09]

Katey Cat is paid on a monthly basis. For the month of February of the current year, she earned a total of $8,288. FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,375.17. What is the amount of the employer's payroll taxes liabilities

A $56.00
B $120.18
C $378.00
D $1068.04

Need poh solution and explanations =).

[Larry Tan]

Katey Cat is paid on a monthly basis. For the month of February of the current year, she earned a total of $8,288. FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,375.17. What is the amount of the employer's payroll taxes liabilities

A $56.00
B $120.18
C $378.00
D $1068.04

Need poh solution and explanations =).

Answer is (D). [8,288 x (6.2% + 1.45%)] + [7,000 x (0.8% + 5.4%) = $1,068.04

[Illumina_Ti]

Prac 2 - Partnership Liquidation

To those who can solve this, share your knowledge naman....tagal ko nang sinosolve to pero ala sa choices....

EE, FF and GG are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows:


Investments Withdrawals
EE P40,000 P25,000
FF 35,000 12,500
GG 75,000 12,500

On December 31, 09 the partners decided to liquidate the business. After exhausting partnership assets, liabilities of P25,000 remain unpaid. EE is personally insolvent.

What amount of cash is to be paid to GG upon liquidation?

a. P37,500
b. P (37,500)
c. P 18,500
d. P (18,500)

[thomasianCPA09]

C. I think.

A = L + C

125,000 = 25,000 + 100,000(Capital Less Drawings)

Sinabi na 25,000 worth na liabilities is unpaid. It means na out of 125,00 worth of assets, wala silang narealize doon. Kaya ito yung Loss on Realization to be absorbed by partners based on their ratio agreed upon.

I.
A = 125,000 (125,000)
_______

L = 25,000
EE = 15000 (62,500) = (47,500) <-- Insolvent
FF = 22,500 (37,500) = (15,000)
GG = 62,500 (25,000) = 37,500

EE has no other assets, kaya icocover ito ng other partners

II.
A = 0
_______

L = 25,000
EE = (47,500) 47,500 = 0
FF = (15,000) (28,500) = (43,500) <-- Solvent
GG = 37,500 (19000) = 18,500

Magcocontribute pa ng additional 43,500 si FF.Bakit? Kasi solvent partner siya. This means na 18,500 ang matatanggap ni GG galing kay FF. The remaining 25,000(43,500 less 18,500) ay for outside creditors.

I hope this helps.

[Illumina_Ti]

thnx sa reply dude!

bukas ko pa malalaman kung tama nga yan....

but it seems correct....

[thomasianCPA09]

thnx sa reply dude!

bukas ko pa malalaman kung tama nga yan....

but it seems correct....

No problem.

Saan ka nagrereview?

[Illumina_Ti]

No problem.

Saan ka nagrereview?

CPAR, ikaw san po? baka naman tapos ka na

baka masundan pa to...ok ba tol?

basta ol ka lang po para....masagutan agad heheheh...

reliable source! of answers and solutions...

[thomasianCPA09]

review school sa r.papa ako, eh.
katatapos lang namin last friday dyan kaya medyo sariwa pa sa utak ko.(sana maretain hanggang boards) masarap magsagot ng accounting problems mahirap lang magtype ng solutions.hehe.

[Larry Tan]

review school sa r.papa ako, eh.
katatapos lang namin last friday dyan kaya medyo sariwa pa sa utak ko.(sana maretain hanggang boards) masarap magsagot ng accounting problems mahirap lang magtype ng solutions.hehe.

PSBA Manila or RESA?

[Larry Tan]

Nakuha ko na poh yung first yung second na lang poh. Thank you.

Since in substance it is a purchase with a financing arrangement, the asset is owned by the lessee and therefore any gain or loss from changes in fair value (compared to the book value) naturally accrues to the lessee (being the owner).

[thomasianCPA09]

PSBA Manila or RESA?

ReSA po...
Oo nga pala kapitbahay ng ReSA ang PSBA.

[thomasianCPA09]

PSBA Manila or RESA?

ReSA po...
Oo nga pala kapitbahay ng ReSA ang PSBA.

[Larry Tan]

ReSA po...
Oo nga pala kapitbahay ng ReSA ang PSBA.

Sanay ka na sa french accent ni Tony Dayag? Feedback naman sa mga reviewers ng RESA. Magkano pala 2 Volumes of Tamayo's reviewer sa Taxation?

[thomasianCPA09]

Sanay ka na sa french accent ni Tony Dayag? Feedback naman sa mga reviewers ng RESA. Magkano pala 2 Volumes of Tamayo's reviewer sa Taxation?

Hindi ko po alam kung magkano yung reviewer ni sir Tamayo. Tanong ko na lang po bukas.

About sa reviewers, overall maganda po yung flow ng review. Like any other review schools, may schedule silang sinusunod kahit ata pati jokes nakaprogram na, eh. Masarap makinig ng banatan nila sa isa't isa.
BL (sir Bonafe) - Joke only. Ang discussion po niya ay per handouts. He discusses while answering the materials, emphasizing the important details at mainit sa board. Sabi niya, ang exam ng BL ay paulit-ulit lang naman daw. Hindi tulad ng problem-solving subjects na may variety every boards.
TX (sir Tamayo) - .Green.pero malupit. As of now, Donor's Tax, Estate Tax, Output Tax na ang natatapos namin. Wala pa kaming quizzers. He makes tax fun. Pinapaintindi niya sa amin kung bakit ganoon ang treatment ng bawat item sa computation. Balita ko mahiwaga hand-outs nito.
TA at MA (sir Aljon) - Idol. Sa ToA, first 30mins may quizzer na binibigay which the topic is being given in the previous day for advance study, then he discusses yung mga malabong subtopics. Sa MA, akala ko enough na yung natutunan ko sa Cost Behavior, CVP, Var-Abs Costing pero bitin na bitin pa pala nung diniscuss niya.
AT (sir James) - I can't compare to anybody kasi he handled me in AT even in my undergrad days. Siya lang ang source ng AT knowledge ko. Masipag talagang magturo lalo na sa review, siguro kasi lesser time ang alloted sa AT sa review compared sa undergrad.
He gives practical real life samples para ipaintindi ang AT.
AP (ma'am Ireneo) - Ang bilis magsalita pero she does it all. She really assumes na review na lang ang ginagawa ng mga reviwee(kaya nga review school). na may idea na sa bawat topic she discusses. pero detailed pa rin naman ang pagtuturo niya. mabilis lang talaga.
P1 (sir Ube) - sa umaga. Rita sa gabi. yan ang joke nila sa kanya. He is better in writing than expressing himself.peace, sir. hindi ko masagutan handouts niya in advance, nahihirapan ako.haha.
P2 (sir Dayag) - Aztig! Olryt! French Accounting. walang oras na nasasayang sa kanya. Sinusulit niya bawat minuto. (Olryt, clazz! May 5 minutez p-ha tayo. Pwede p-ha natin zagutan yung nexzt problem.) Sulat doktor handwriting ni sir. lugi ka kapag malayo ka sa white board. He solves the problems the shortest way possible.

[Larry Tan]

Balita ko may gwaping ng reviewer na distracted mga girls at mga mylas, di maka concentrate sa review kakatitig kay Cris.