@tvpaul, I use Gleim for the CPA, and those questions were NOT baked into BEC. The CMA Exam appears to take a deeper dive in general.
Example (and this is just chapter 1):
The following information was taken from last year’s accounting records of a manufacturing company.
Inventory – January 1 -December 31
Raw materials – $38,000 – $ 45,000
Work-in-process- 21,000 – 10,000
Finished goods – 78,000 – 107,000
Other information
Direct labor – $236,000
Shipping costs on outgoing orders – 6,500
Factory rent – 59,000
Factory depreciation – 18,700
Advertising expense – 24,900
Net purchases of raw materials – 115,000
Corporate administrative salaries – 178,000
Material handling costs – 35,800
On the basis of this information, the company’s cost of goods manufactured and cost of goods sold are
A. $460,500 and $489,500, respectively.
B. $468,500 and $439,500, respectively.
Answer (B) is correct.
This solution requires a series of computations.
Beginning raw materials – $ 38,000
Add: net purchases raw materials – $115,000
Materials available – $153,000
Less: ending materials – (45,000)
Materials used in production – $108,000
Direct labor – 236,000
Manufacturing overhead
Factory rent – $59,000
Factory depreciation – 18,700
Material handling costs – 35,800
Total Manufacturing overhead – 113,500
Total manufacturing costs – $457,500
Add: beginning work-in-process – 21,000
Less: ending work-in-process – (10,000)
Costs of Goods Manufactured – $468,500
Add: beginning finished goods – 78,000
Less: ending finished goods – (107,000)
Cost of Goods Sold – $439,500
C. $468,500 and $470,900, respectively.
D. $646,500 and $617,500, respectively.
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