[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

[payaza2000]

@FAR_WARS,monikernc

Typically the problem will specify whether it is for Conversion Costs or Direct Materials.

All units are included for Beginning Inventory for Weighted Average (compared to FIFO where you use inverse of % Complete for Beginning Inventory). If the question asks you for Total Costs you would apply the Cost Per Equivalent Units * (% Complete * Ending Units), whether using FIFO or Weighted Average.

Remember though that for FIFO we use only cost incurred this period to come up with Cost Per Equivalent Units.

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[FAR_WARS]

Penn Manufacturing Corporation uses a process costing system to manufacture printers for PCs. The following information summarizes operations for its NoToner model during the quarter ending September 30, 20X1:

Work-in-process inventory, July 1: 100 Units, Direct Labor: $50,000
Started during the quarter: 500 Units
Completed during the quarter: 400 Units
Work-in-process inventory, September 30: 200 Units
Costs added during the quarter: Direct Labor, $775,000

Beginning work-in-process inventory was 50% complete for direct labor. Ending work-in-process inventory was 75% complete for direct labor. What is the total value of the direct labor in the ending work-in-process inventory using the weighted-average method?

a) $183,000
b) $194,000
c) $225,000
d) $210,000

Is there a difference between ending WIP and ending inventory?
This question asks for end WIP, but the answer (c) is for end inv.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

i don't understand your question FARWARS. DM, DL and OH are applied in the WIP inventory, so for this question, ending inventory is ending WIP inventory.
answer c, is value of DL in the ending WIP inventory.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

It bugs me that they imply that “ending WIP inventory” is the same as “ending inventory”

My understanding is that:

“ending WIP inventory” is 200 units that are 75% complete.

So we can add 150 units to “ending inventory”

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

to be accurate, the 200 units in WIP ending inventory that are 75% complete are equivalent to 150 units in WIP ending inventory. to apply the costs,in process costing, you use the number of equivalent units = 150.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[payaza2000]

Whew Started B2 on breakeven, need to crack open my algrebra book. That section killed me. The algebra isn't that bad it's just setting up the question. I feel stupid sorry for rant guys.

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[monikernc]

Where is everybody tonight? I have started hitting weak areas and some of the calculation questions are just grinding!!! I can't wait to take this exam but i am nowhere close to a 3 hour pace with this crap.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

I'm here. Still crawling through the end of b1…

FAR- 80
BEC- 75
AUD- 78
REG- ?

[FAR_WARS]

I post this question again. I get 13.875 equiv units no problem. When calculating cost/equiv unit, they want you to do 55.5/13.875. Why not (75+55.5)/13.875? Question does not specify FIFO or WA.

A company uses process costing to assign product costs. Available inventory information for a period is as follows:

Beginning Inventory: 0 units
Started during the period: 15,000 units (Material Cost: $75,000 , Conversion Cost: $55,500)
Transferred out: 13,500 units
End of period: 1,500 units

The ending inventory was 25% complete as to the conversion cost. 100% of direct material was added at the beginning of the process. What was the total cost transferred out?

a. $130,500
b. $126,973
c. $121,500
d. $117,450

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Anonymous]

I have yet to arrive to the cost accounting section…. Maybe I will be posting a lot of mcqs when I get there…

[monikernc]

Farwars the question above is #1090 in ninja mcq.

Because beginning inventory is 0, the question doesn't need to specify FIFO or Wtd Avg – all costs were incurred in this period. It does require you to calculate equivalent units for Materials and Conversion Costs to determine the costs applied to the units transferred out.

100% of materials are added at beginning so the EU for materials is calculated as 13,500 transferred out + 1500 ending inv = 15,000 EU. 75,000/15,000 = $5 unit materials cost

Ending inventory of 1,500 units are only 25% complete for conversion costs and 13,500 were transferred out and they were 100% complete. The number of EU for Conv Costs = 13,500 + .25(1500)= 13,875, and $55,500/13,875 = $4 unit.

Now you have costs per equivalent unit for Materials and Conv costs. Units transferred out had a total cost of $5 + $4 = $9. $9 * 13,500 units transferred out = $121,500

Yep, that is BEC in a nutshell

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

Farwars, to extend that question above… Total costs in the period were $75,000 + $55,500 = $130,500. We just determined that $121,500 in costs applied to the units transferred out. This leaves $9,000 which must be the value of ending inventory and this can proven by: Conv Costs EU = .25 * 1,500 = 375, 375 * $4 = $1,500. Materials EU = 100% *1,500 = 1,500, 1,500 * $5 = $7,500. $1,500 + $7,500 = $9,000 in costs in ending inventory.

I hope this helps you as much as it helps me. Working through it and having to post why the solution works helps me a lot. Thanks!

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

@monikernc. Thanks- I was getting tied up because i was not calculating DM separately from Conversion Costs. Finally today I shall move on from PROCESS COSTING!

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Sheffi]

Can anyone explain Internal Rate of Return (IRR)?
Is there an equation that I can't find?

[Sheffi]

any suggestions for financial management section? Totally lost.

[Author]

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