1. CPA Company manufactures a single product. It keeps inventory of raw materials at 150% of the coming month's budgeted production requirements. Each unit of product requires three (3) pounds of materials. The production budgets in units consist of the following: July 1,000 August 1,200 September 1,400 Raw material purchases in August would be?

2. In February 20X4, Walley Corp decided to sell it's entire Plant division. The Plant division was a major part of Walley Corp's business and the sale will result in a strategic change in direction for the company. The sale was completed in January 20X5 and resulted in a gain on disposal of ?500,000. In 20X4 Plant's net losses were ?350,000 and ?20,000 in 20X5 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Walley Corp for its Plant division?

3. Charm Company's year-end is December 31, 2020 and the financial statements were authorized for issueon March 31, 2020. The entity had the following events: On February 1, 2020, the entity determined that the total cost of an equipment purchased is P2,300,000. The asset was purchased on November 12, 2019 and unrecorded. On March 15, 2020, the entity discovered that its 2019 salary expense was understated by P150,000. On March 20, 2020, the entity issued 100,000 ordinary shares at par of P10 per share. On December 31, 2019, an entity carried accounts receivable of P500,000. On March 25, 2020, the customer declared bankruptcy and will be unable to pay the whole account. What total amount should be reported by Charm Company as adjusting events on December 31, 2019?

4.

Mason Company paid its annual property taxes of $240,000 on February 15, 2009. Mason also anticipates that its annual repairs expense for 2009 will be $1,200,000. This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired. What amount should Mason deduct for property taxes and repairs in each quarter for 2009? First Second Third Fourth Quarter Quarter Quarter Quarter A) $240,000 $600,000 $600,000 $ 0 B) $360,000 $360,000 $360,000 $360,000 C) $540,000 $300,000 $300,000 $300,000 D) $ 60,000 $660,000 $660,000 $ 60,000 A company provided the following information at year-end. 2019 2018 Building 12,500,000 12,500,000 Accumulated depreciation 2,500,000 1,937,500 The straight-line method of depreciation is used. The residual value is 10% of asset cost. What is the useful life of the building?CPA Company produces three products, with costs and selling prices as follows: Product A Product B Product C Selling price per unit.............. $30 $40 $50 Variable costs per unit .......... _lO _25 _20 Contribution margin per unit $ 8 $ 8 $ ? A particular machine is a bottleneck. On that machine. 4 machine hours are required to produce each unit of Product A. 2 hours are required to produce each unit of Product B, and 3 hours are required to produce each unit of Product C. In which order should it produce its products? CPA Company uses a standard cost system and prepared the following budget at normal capacity for the month of January: Direct labor hours 25,000 Variable factory O/H $2.50/hr Fixed factory O/H $100,000 Total factory O/H per DLH $6.50 Actual data for January were as follows: Direct labor hours worked 22,000 Total factory O/H $150,000 Standard DLH allowed for capacity attained 24,000 Using the two-way analysis of O/H variances, what is the budget (controllable) variance for January?CPA Company makes and sells only one product. Annual data on the company's single product follow: Unit selling price $100 Unit variable cost $60 Total fixed costs $400,000 Average operating assets $2,000,000 Minimum required rate of return 12% If CPA Company sells 20,000 units per year, the retum on investment should be