1.

Next month's budgeted sales for TEMP is 18000 units. Each unit of product TEMP uses 6
kilograms of raw materials. The production and inventory for June 1992 are as follows:

raw materials
finished goods

opening inventory
21,000kgs
15000 units

planned ending inventory

24,400 kgs
11400 units

During the production process, it is usually found that 10% of production units are scrapped as
defective and this loss occurs after the raw materials have been placed in process. What will the raw
material purchases be in June?

Answer is 99,400
FG Production = 18,000 + 11,400 15,000 = 14,400
RM Purchases = (14,400 x 6 / 0.9) + 24,400 21,000 = 99,400.

2.

Jasmin Products, Inc gathered the following information related to one of its materials:
order quantity 1500 units
normal use per day 500 units
maximum use per day 600 units
minimum use per day 100 units
If the lead time is five days, the order point is?

Reorder point = 600 x 5 = 3,000

3. It is budgeting time for Del Co. The following assumptions were agreed upon for the next year
after a strategic planning session which covered a five-year horizon
1. sales is estimated to be at 70000 units at its national selling price of 126. 75% of total sales
are on credit. 1.5% of net sales is provided for doubtful accounts.
2. sales discount are given to various customers at different rates and net to gross ratio is at
93%
3. mark-up on merchandise is at 45% of invoice cost. Beginning inventory is 80900 and is
expected to be reduced by 15000 at the end of the period
4. selling and administrative expenses is expected to be 15% of gross sales
5. depreciation is computed at 500000
The projected operating income for the year is?
Sales 8,820,000 (70,000 x 126)
Sales discount
Net sales 8,202,600 (8,820,000 x 93%)
Cost of sales (6,082,759) (8,820,000 / 145%)
Gross profit 2,119,841
Selling & admin (1,323,000) (8,820,000 x 15%)
Provision for bad debts (123,039) (8,202,600 x 1.5%)
Depreciation (500,000)
Operating income 173,802

4.

Mga ka-PEX, Good day! I just want to ask if this promissory note is negotiable (assuming all of
the other requisites of Sec.1 of the Negotiable Instruments Law are present)
(undated)
I promise to pay P or bearer ten thousand pesos on Christmas day.
(sgd.) Y
Issuance date is December 1, 2014
Kasi hindi specified kung kailang "Christmas day". Pero kapag undated, issuance date ang
susundin. Ang "Christmas day" ay fixed determinable time (a time that can be determined
with certainty after the execution), kaya po pwede na iassume na yung coming christmas ang
tinutukoy ng instrument. kaya nalilito ako. Sana matulungan nyo ako. Salamat po!

No..kasi gaya ng sabi mo not specified kung kailan kahit christmas day pa wala naman year
paano kung next year yan or the next.hindi pwede magaassume na lang kaya hindi pa rin
determinable.

5.

the net sales of Grand Manufacturing co. in 1990 is total, 580,600. the cost of
goods manufactured is 480000. the beginning inventories of goods in process
and finished goods are 82000 and 65000 respectively.the ending inventories
are
goods in process 750000, finished goods 55000. the selling expenses is 5%,
general and administrative expenses 2.5% of cost of sales, respectively. the n
et profit in the year 1990 is
ANSWER: 53,850.00

SEVEN MISTAKES CPA BOARD EXAM TAKERS COMMIT

1. Not Studying How the CPA Board Exam Questions are Structured.
Ang mga tanong sa CPA Board exam ay sobrang tricky, kaya kailangan mo talaga
ng matinding focus to each and every word of the question and multiple choices.
Like this:
Maria Regina Cristina and Jennigail Mania Pili Co. is a wholly-owned subsidiary of
Nutrilin Bottling, Co. Maria Regina sold P1,000,000 of Cristina Jennigail to Nutrilin
Bottling, Co. during 20XX. Maria Regina had P4,000,000 of Cristina Jennigail on
hand at the end of 20XX and Nutrilin Bottling, Co. had P200,000 of bottle inventory
it had purchased from Maria Regina on hand at the end of 20XX. Nutrilin Bottling,
Co.s gross margin rate is 10% and Maria Reginals gross margin rate is 50%. How
much intercompany profit in inventory should be eliminated from Nutrilin Bottling,
Co.s financial results at the end of 20XX?
a. P500,000
b. P400,000
c. P100,000
d. P20,000
Look closely at the question sa taas, if you can notice, kung anu-anong information
ang pinaglalagay ng examiner pero di naman lahat ay may kinalaman sa tanong.
Minsan gumagamit sila ng mga pangalan ng companies na nakakalito Those
words/phrases are meant to distract you para matest talaga ang kalaliman ng
kaalaman nyo sa mga accounting theories.
You do not need to know how much was sold during the year, how much inventory
Maria Regina had on hand or what Nutrilin Bottling Co.s margins were. If you start
this question by reading the last sentence, yung misming tanong before reading all
the other facts at the beginning of the question, you can more easily pinpoint the
information you need.

First, the only two pieces of information you need are Nutrilin Bottling Co.s ending
Cristina Jennigail inventory related to purchases from Maria Regina and Maria
Reginas margin rate.
Second, they switched the order in which they provide information about the two
companies. In the first part of the question, Maria Cristina is listed first. In the last
part, Nutrilin Bottling Co. is listed first. If you are not careful, you will apply Nutrilin
Bottling Co.s margin rate to the ending inventory and get to an incorrect answer.
Third, the incorrect answers are all combinations of various numbers used in the
facts of the question. Minsan imumultiply lang sa 2 or divided by 2.
Sa exam, they will not use colorful, memorable scenarios, like Maria Regina selling
her backyard Cristina Jennigail. Theyll make it as boring and mundane as possible,
with names like Company A and Company B or Mel and Charo. If you do not
pay careful attention to the names, you can easily pick up the wrong information
which will lead you to the incorrect answer.
Kaya kahit mahirap makapgfocus pag nasa actual board ka na dahil sa kaba and
paranoia. (Based on experience). Dapat chillax lang.
Always ask the Lord for the wisdom to stay focused during the exam.
If any of you lacks wisdom, he should ask God, who gives generously to all without
finding fault, and it will be given to him. James 1:5
By the way, the correct answer is C.
CPA Board Exam Mistake #6
Not Focusing on the Way You Learn Best
If you are currently reviewing for the CPA Board Exam, malamang graduate ka na
sa College, unless you are taking an undergrad review, so I believe you know what
it takes para pumasa sa mga exams. And lahat tayo ay may ibat-ibang ways on
how to study.

During the review days, most of the reviewees are using the Tips on How to Study
Effectively for the CPA Board Exam given by the professors in every review
centers. Madalas iniiba nila ang study habits nila at nakakalimutan nila kung paano
nila yun nagamit para masurvive ang College life. Keep in mind na there are
millions of ways to study effectively, and it varies from individuals to individuals.
Maybe you learn best by listening. Pwede ding by writing. Maybe by watching
instructional videos. May mga nagsusummarize din ng topics and kung minsan may
paflashcards pa (or even yung ring binded color coded index cards). Whatever
method has made you successful during college days is what you should focus on
for the CPA exam. Pwede din namang magpractice ng additional habits para mas
maging effective ang pagrereview.
You should also consider the schedule you will attend in the review centers. Kung
Nocturnal ka and mas nagpprocess ang utak mo twing gabi, or sadyang mas active
ang katawang lupa mo ng ganung oras, I suggest na magtake ka ng afternoon
class. Para may tulog ka sa morning, review classess sa hapon, then self-study na
mgadamag sa gabi. Kung day person ka naman, pwede ka magattend ng review
classes during the morning tapos by afternoon ituloy mo na sa bahay or library ang
pagaaral then rest sa gabi. Note: These schedules are not according to studies blah
blah, those are just my suggestions. In the end, ikaw pa din naman makakaalam
ng swak na time to study. Do not conform sa trip ng tropa mo, hindi dahil sa
morning session ang bestfriend mo ay magmomorning session ka na din; hindi
porke may maganda.gwapo sa afternoon session, magaafternoon session ka na din
(hmmm Actually pwede din pala. Haha)
Just always remember that time is of the essence, sabi nga diba it takes 21 days
for an action to be a habit, eh iilang days lang ang review perod mo babawasan mo
pa ng 21 days para magpalit pa ng study habit. Maintain the way you study,
syempre yung mga effective ways lang, kung wala ka talagang study habit nung
college, abah e ibang usapan na yun.
I believe na alam mo naman sa sarili mo ang tamang technique na swak sayo. Just
do it!

CPA Board Exam Mistake #5

Using Outdated Review Materials
Madalas dahil sa pagtitipid or kawalang ng resources, many of the reviewees or
even undergrad students use older versions of review materials or books. This is
understandable but I highly discourage you in doing this for two reasons.
Firsts, walang forever kahit sa mga accounting standards, pronouncements and
regulations. These things change frequently. Pwedeng yung mga standards na
applicable last year ay di na applicable this year.
Second, updated review materials give you a glimpse into testing trends. The way a
certain examiner throws questions and principles. It also gives you focus in the
topics that are important and not yet obsolete. Yan ang major advantage ng pageenroll sa review centers. The instructors get updates from different regulating
bodies on what areas are likely to be important.
Using old review materials will send you to the wrong path and have you focus on
the wrong topics.
Any money na matitipid nyo sa paggamit ng mga oudated review materials or
review books is more that offset by what you stand to lose by not being well
prepared for the exam. The high risk you are taking is likely to result in more study
time, retakes and extra exam fees
Yes, makakatipid ka nga somehow, kaya lang your future is at risk. The investment
you will make today may result to a greater outcome. If di talaga kaya, madami
namang paraan, its up to you kung pano ka didiskarte. If theres a will, theres a
way.
CPA Board Exam Mistake #4
Focusing on Your Strengths Instead of your Weaknesses
Bakit ba masarap aralin ang Cash & Cash Equivalents, Partnership, Job Order
Costing, etc.,? Syempre kasi madali.

Eh bakit halos mapilipit utak natin makita pa lang ang salitang Derivatives, Process
Costing, Income Taxation, etc.? Kasi nga ang hihirap. Nakakapanghina.
Its okay na magexcel in a certain subject or topic, iba din kasi ang feeling pag
inaaral mo na yung mga alam mong alam mo na ang sisiw na sisiw na sayo. Pero
when you are reviewing for the CPA Board Exam, you are going to be assessed with
8 Board Subjects. Hindi lang sa P2-Partnership part or MAS-Variable Costing. You
will take all the board exam subjects. Having limited time to prepare for the battle,
you should be focusing sa mga bagay na di mo pa alam or nahihirpaan ka pading
intindihin hanggang nagyon,
Bawasan mo ang time na ginugugol mo sa mga topics na undergrad palang ay
master mo na at kahit nakapatiwarik ka pang magexam ay sure na masasagot mo.
Allocate most of your time sa mga topics na kahinaan mo. Hindi mo naman
matutunan ang Derivatives kung di mo aaralin. Kahit anong gawing mong pagtakas
sa mga topics na nagka-cause ng internal hemorrhage sa utak mo, one thing is
certain You have to study it in order for you to learn.
Board exam is not a matter of how many topics you have already mastered, but its
all about how well you understand those topics. Hindi din yun paramihan ng mag
questions na alam na alam mo ng sagutin kahit pagbaligtarin pa ang mga choices.
Its about how deep your understanding is sa mga accounting principles and their
application.
Success can be achieved by practicing your strengths and working on how you can
overcome your weaknesses. P2 Atienza (Iba toh!)

CPA Board Exam Mistake #3

Not Taking Breaks
Parang pagwoworkout. If you are working out everyday, it will be
counterproductive. Your body needs a chance to rest and recover after working out
in order for you to see the improvement.
Praparing for the CPA Board Exam is an intense mental workout. Make sure na you
give your mind and soul a chance to rest and recover as well. Even the Lord took a
rest when He is creating the Earth. Sabi nga sa Mark 2:27 The Sabbath was made
for man, not man for the Sabbath.. Taking a day-off sa pagaaral to take some rest
is understandable. Unless android ka na di napapagod.
When I was reviewing, there is a day talaga na hindi ako nag-aaral, my Me-time.
Para akong may 1-day pardon from imprisonment. I am free to do everything I
want, Attending to church srvices, malling (Pag may budget), nood ng Game of
Thrones, kain, meeting with friends, but most of the time, tulog talaga. Provided
that I have already finished what has been booked in my calendar. If may topics
ako na hindi nasunod (which I considered as utang), I compensate those topics
by studying it in my Me-time.
Your brain can process as much. Para yang external drives na may certain capacity.
If youll pour everything jan baka maglog and mafreformat. What you have to do is
to refresh it as often as possible.
Another discipline of resting your precious brain is by taking an in-between-studybreaks. Pwedeng after 1 hour of reading e tumayo ka, take some refreshments then
go back to work after 10 or 15 mins. Its up to you. Point is, you have to take a
rest.
And remember not to feel guilty pag nagpapahinga ka, lalo ka lang masstress pag
inisip mo na nagaaksaya ka ng oras doing nothing. Keep in mind na you had done
your task kaya ka nagkaroon ng time to rest.
Remember that one of the Human Fatigue is one of the inherent limitations not jus
in audit, but in everything,

CPA Board Exam Mistake #2

Not Making a Personalized Study Plan
During undergrad days, I believe we are all guilty of having a study schedule at the
beginning of the semester. Yung todo effort pa tayo ng paglayout ng schedule natin
somewhere, pero halos maalikabukan lang come 2nd week of classes. This habit ay
dapat ng itapon kasabay ng mga alala ng aming nakaraan (#Hugot).
As Ive said sa recent post ko, the span of time to prepare for the CPA Board Exam
is really limited. Wala namang narerentahan na Silid ng Kaluluwa at Panahon
katulad ng nasa templo nila Dende na mabagal ang takbo ng oras. Magugulat ka
nalang isang linggo nalang pala ang natitira bago magboard exam.
To make the most out of the limited time, you should have planned from Day 1.
Here are some tips on what and how to make an effective study plan.
1. Assess your self
Connected ito sa #4 CPA Board Exam Mistakes, before ka pa sumabak sa first day
ng review dapat alamin mo na ang mga topics na dapat mong aralin. Kung saan ka
malakas at mahina, para maallocate mo ng maayos ang mga dapat mong aralin.
You may take a self-test na based lang sa mga naalala mo pa for the past 4 or 5
years before starting the review. No pressure, kasi self-assessment naman yan and
alam mo naman sa sarili mo ang mga bagay na alam mo na.
2. Choose an appropriate schedule that suits you
Connected din sa #7 CPA Board Exam Mistakes, kahit allowed ang pagsi-sit-in sa
mga review centers, advisable pa din na the day you are on the counter, paying
your tuition fee, you already know what schedule you will take. You should consider
everything, mula sa proximity ng review center from your house/dorm; perfect time
na nasa lucid interval ang iyong utak; and everything else.
3. Place to study
Hindi lang dapat timing ang nasa plan mo, pati nadin ang location. Kung sa bahay o
sa library ka ba magaaral; Kung sa Starbucks Dapitan or Mcdo P. Campa ka ba

tatambay para magreview; kung may study area ba ang dorm na rerentahan mo;
kung conducive ba na magaral kasama ang maiingay at makukulit mong classmates
sa dorm, etc.,
4. Your calendar
Kailangan mag-allocate ka na ng appropriate time per subject/topic. Nung ako
ngrereview, I called my style The Combo, hindi ko pinagsasabay ang theories in
one day, baka makatulog lang ako for 100 years. Hindi ko din puro problems lang in
a day, Im afraid na baka ikabaliw ko naman yun. What I did is, I study 1 theory
subject and 2 practical subjects per day. Or depende sa topics. Basta laging combo
para balanced and hindi magsabaw or matuyot ang utak ko
5. Disiplina
A plan will never prosper if not executed well. Wala kang ibang aasahan kundi ang
sarili mo. Hindi mo pwedeng icompel ang nanay mo na lagi kang iremind na sundin
ang schedule mo. You should do it yourself kaya nga Personalized Study Plan eh.
Designed by you for you.
Bottomline is that if you really have the hunger to succeed, you should prepare.
Sabi nga nila, Failing to prepare is preparing to FAIL.
CPA Board Exam Mistake #1
Relying on Your Own Knowledge
Madalas pag nasa battle tayo lalo na pag exam, nagrerely tayo sa sarili nating
kakayahan. Sa sobrang tiwala natin sa sarili natin nakaklimutan natin ang tunay na
source ng lahat ng wisdom and knowledge.
Were trying to make ourselves believe na kaya na natin magexam kahit deep
inside alam nating kulang pa, madami pa tayong di naaral. And yung bagay na
feeling natin ay kulang is our Faith with the Lord. We are not trusting Him 100%.
We are not believing how Great He is na kaya nya tayong ipasa sa Board Exam.
Its okay to trust in yourself, but do not be too confident with yourself. Proverbs 3:5
says, Trust in the Lord with all your heart and lean not on your own

understanding.. Sino ba ang gumawa ng examiners ng CPA Board? Di ba si Lord,

so just trust Him na He will do anything for you to be successful. The Lord will
never leave you nor forsake you (Deuteronomy 31:6).
Okay, lets say na it is given na sobrang galing mo na as in daig mo pa si Einstein or
Jimmy Neutron, pero there are still uncontrollable factors around us. Factors to
hinder us. Pwedeng ma-mental block tayo during exam; pwedeng may magyari
along the way and malate tayo sa exam; pwedeng mataranta tayo and all. But
seek first the kingdom of God and his righteousness, and all these things will be
added to you Matthew 6:33
Hindi sila Valix, Dayag, Tamayo, etc. ang source ng wisdom natin. They are just
instruments used by God to prepare us for the CPA Board Exam. Those books and
review materials are just like powerbanks na limited ang source of energy, that one
thing is certain, na lahat yan mauubos eventually. But if we are plugged in the
ultimate source of wisdom, which is Jesus Christ our Lord, we will never experience
any wisdom shortage. All it takes is to believe.