BEC Study Group Q1 2017 - Page 21

Viewing 15 replies - 301 through 315 (of 813 total)
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  • #1444979
    Anonymous
    Inactive

    The explanation does make sense-if the interest rates are higher relative to other countries it will attract investors and will eventually make the currency appreciate against others…

    #1444986
    Anonymous
    Inactive

    @mooseonloose-it may be discouraging but keep working on Ninja-you will get there!

    #1445000
    mooseonloose
    Participant

    @anyatver Thanks, good luck on your exam.

    #1445021
    Anonymous
    Inactive

    Thanks!

    #1445219
    LIZZ
    Participant

    Have we talked about this question yet? I saw it both in Beker and in Gleim.

    Question CPA-03792

    Rolling Wheels purchases bicycle components in the month prior to assembling them into bicycles. Assembly is scheduled one month prior to budgeted sales. Rolling pays 75% of component costs in the month of purchase and 25% of the costs in the following month.

    Component costs included in budgeted cost of sales are:

    April -$5,000
    May-$6,000
    June $7,000
    July $8,000
    August- $8,000

    What is Rolling’s budgeted cash payments for components in May?

    a $5,750

    b. $6,750

    c. $7,750

    d. $8,000

    Explanation

    Choice “c” is correct, $7,750.

    This problem requires the candidate to derive budgeted cash payments for the month of May from a schedule of budgeted cost of sales. The question indicates that components are purchased one month prior to assembly and two months prior to sale.The question also indicates that components are paid for over two months, with 75% being paid in the month of purchase and the remaining 25% paid in the following month. Therefore, cash payments in May will relate to units to be sold in June and July. The payments will include the 25% balance of components purchased for June sales, and the 75% payment for components purchased for July sales. ($8,000 x 75%+ $7,000 x 25%=7,750)

    FAR - 05/2015
    AUD - 75,11/2014
    REG - 07/2015
    BEC - 09/2015

    #1445237
    ng3926a
    Participant

    My exam was supposed to be tomorrow but was cancelled due to “civil unrest”… so now I wait until Monday. I don't want to keep studying but I'm so afraid if I don't keep reviewing one of the formulas will somehow leave my brain. Such a bummer.

    #1445244
    ng3926a
    Participant

    @LIZZ yeah I had a lot of problems with that question at first. I think it's just a matter of reading the question carefully.

    Purchasing of Month 0 materials occurs in Month -2 as credit and 75% is paid, Assembly of Month 0 product occurs in Month -1 and the rest (25%) is paid, and then the sales occurs in Month 0.

    Therefore for cost of sales of July (month 0) the purchases were actually made in May (Month -2), and assembled in June (month -1). So July's costs ($8000) is actually what was purchased in May and 75% of that cost was paid in May. By that same logic, 25% of June's costs ($7000) were paid in May.

    ($8,000 x 75%+ $7,000 x 25%=7,750)

    I've never taken BEC before, but I don't know if there'd really be a question this complicated in the exam that counts. Seems like a throwaway that got released.

    #1445249
    pharaoh
    Participant

    I am really struggling with IT questions on Ninja. Many of them are not in the study material and it is very frustrating getting the questions wrong one after the other, any ideas on how to tackle that section?

    FAR 8/2016
    AUD 1/2017
    REG TBD
    BEC TBD

    #1445313
    Wafi
    Participant

    Hello @SKYXLINER

    I am totally agree with you. Roger does not prepare well for writing letters . So how I can fix it ? Did you find a great to compensate that weakness point?

    Best
    Wafi

    #1445316
    Wafi
    Participant

    Hello @skyxliner

    I am totally agree with you. Roger does not prepare well for writing letters . So how I can fix it ? Did you find a great way to compensate that weakness point?

    Best
    Wafi

    #1445411
    mooseonloose
    Participant

    Newman Products has received proposals from several banks to establish a lockbox system to speed up receipts. Newman receives an average of 700 checks per day averaging $1,800 each, and its cost of short-term funds is 7% per year. Assuming that all proposals will produce equivalent processing results and using a 360-day year, which one of the following proposals is optimal for Newman?

    A.A $0.50 fee per check

    B.A flat fee of $125,000 per year

    C.A fee of 0.03% of the amount collected

    D.A compensating balance of $1,750,000

    Isn't the current cost optimal for Newman? 700 times 1800 times .07= $88200

    Considering that each proposal will produce equivalent processing results, the optimal proposal for Newman will be the lowest cost proposal. Consequently, to solve this problem, the costs of each of the proposals must be calculated.

    A) 700 checks × $0.50 × 360 days = $126,000 per year
    B) $125,000 per year
    C) $1,800 per check × 700 checks × 360 days × 0.03% = $136,080 (btw how is this 136,000)
    D) $1,750,000 × 7% = $122,500 (correct answer)

    #1445531
    daintytrudy
    Participant

    Hi everyone, this is my first taking the CPA exam and i am starting with BEC because i heard it's it the one that have the most changes for April 2017. I am using Ninja MCQ- BEC only right to study. Do you think i am on the right track so far?

    #1445541
    pharaoh
    Participant

    How can you approach this type of questions?

    What is the best thing a personal computer (PC) user should do if a program takes longer than usual to load or execute?

    A. Test the system by running a different application program.

    B. Reboot the system.

    C. Run antivirus software.

    D. Back up the hard disk files to floppies.

    FAR 8/2016
    AUD 1/2017
    REG TBD
    BEC TBD

    #1445552
    mooseonloose
    Participant

    Pharaoh, the answers are subjective. Honestly, I would reboot the system. If it continue to take longer than I would run antivirus.

    #1445573
    industryCPA
    Participant

    Anti-virus because if you reboot it might spread

Viewing 15 replies - 301 through 315 (of 813 total)
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