[jeff]

NINJA Study Notes, Flashcards, and Audio: https://www.another71.com/products-page/

Wiley Software: https://www.another71.com/wiley-cpa-software/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[pamdo]

Im doing the MCQ for BEC 5 (in the 2011 version) that has to do with variances and budgets. in the lecture they said that they weren't focusing in detail on budgets but in the MCQ there is a lot of questions on how to get calculate the budget. there are 141 questions in total for this questions and i don't know if its a waste of time going through all those budget questions or skipping them and focusing on the variance questions. my test is in 2 days so I'm freaking out over these budget questions. Help!

REG - 89
FAR -66,73, 80
AUD - 84
BEC -67. 80

[Phoenixface]

Can anyone help me with this question (it's a release question):

Q – A ceramics mfg sold cups last year for $7.50 each. Variable costs of mfg were $2.25 per unit. The co. needed to sell 20,000 cups to breakeven. NI was $5,040. This year, the co. expects the following changes: sales price per cup to be $9.00; variable mfg costs to increase to 33.3%; fixed costs to increase 10%; and the income tax rate to remain at 40%. Sales in the coming year are expected to exceed last year's sales by 1,000 units. How many units does the co. expect to sell this year?

A – 21,600

Solution:

1). NI before taxes = X = 5040/.6 X = $8400

2a). [CM = selling price – variable cost] [ CM = 7.50 – 2.25]

2b). The unit sales last year were 20,000 (BE) plus 8,400 / 5.25 (CM) => 21,600

3). Since the company wants to make 1,000 more in the current year; 21,600 + 1000 = 22,600

My question relates to 2b. The BE even formula is: BE = (FC + profit)/CM

So, if I plug everything in according to the question: 20,000 = (0 + 8400)/5.25

20,000 = 1,600 ……this is where I am stuck, because they seem to add these two numbers together, but algebraically, you subtract them. So, obviously, I am setting up my formula wrong. Can someone explain the correct way to do this? I don't understand what I am doing wrong?

Thanks in advance.

[Phoenixface]

Can anyone help me with this question (it's a release question):

Q – A ceramics mfg sold cups last year for $7.50 each. Variable costs of mfg were $2.25 per unit. The co. needed to sell 20,000 cups to breakeven. NI was $5,040. This year, the co. expects the following changes: sales price per cup to be $9.00; variable mfg costs to increase to 33.3%; fixed costs to increase 10%; and the income tax rate to remain at 40%. Sales in the coming year are expected to exceed last year's sales by 1,000 units. How many units does the co. expect to sell this year?

A – 21,600

Solution:

1). NI before taxes = X = 5040/.6 X = $8400

2a). [CM = selling price – variable cost] [ CM = 7.50 – 2.25]

2b). The unit sales last year were 20,000 (BE) plus 8,400 / 5.25 (CM) => 21,600

3). Since the company wants to make 1,000 more in the current year; 21,600 + 1000 = 22,600

My question relates to 2b. The BE even formula is: BE = (FC + profit)/CM

So, if I plug everything in according to the question: 20,000 = (0 + 8400)/5.25

20,000 = 1,600 ……this is where I am stuck, because they seem to add these two numbers together, but algebraically, you subtract them. So, obviously, I am setting up my formula wrong. Can someone explain the correct way to do this? I don't understand what I am doing wrong?

Thanks in advance.

[Kim4]

Hey, everyone — just checking in. I haven't been on lately (been studying) :), and i have BEC tomorrow. I needed to get it taken now, but I hate that we now have to wait until Aug. to find out the scores. I was spoiled with AUD since I took it onthe last day of the window, I got my scores like a week later.

@Phoenixface– I did this problem just yesterday! I didn't really do it the way that they said, but my way worked — hope it helps. The sentence that starts “This year the co expects the following…” is completely irrelevant except for the tax rate.

If they need to sell 20,000 cups to breakeven, then you use that to find fixed costs. F is fixed costs 7.50(20,000) = F + 2.25(20000). So, F = 105,000

So, now, figure out how many they sold last year —> 7.50x – 105000 – 2.25x = 8400. That solves to x = 21600, and since they sold 1000 more this year, that means the answer is 22,600.

FAR -- 90
AUD -- 95
BEC -- 82
REG -- 92

DONE!

[Kim4]

Hey, everyone — just checking in. I haven't been on lately (been studying) :), and i have BEC tomorrow. I needed to get it taken now, but I hate that we now have to wait until Aug. to find out the scores. I was spoiled with AUD since I took it onthe last day of the window, I got my scores like a week later.

@Phoenixface– I did this problem just yesterday! I didn't really do it the way that they said, but my way worked — hope it helps. The sentence that starts “This year the co expects the following…” is completely irrelevant except for the tax rate.

If they need to sell 20,000 cups to breakeven, then you use that to find fixed costs. F is fixed costs 7.50(20,000) = F + 2.25(20000). So, F = 105,000

So, now, figure out how many they sold last year —> 7.50x – 105000 – 2.25x = 8400. That solves to x = 21600, and since they sold 1000 more this year, that means the answer is 22,600.

FAR -- 90
AUD -- 95
BEC -- 82
REG -- 92

DONE!

[Kim4]

@Journey to fate — I feel the same way wiht the appreciate/depreciate questions on foreign currency. Right now, I'm to the point where i reason through the question in my head, and then pick the opposite answer than what I think, and more often than not, that's the right one. It's my George Costanza method.

FAR -- 90
AUD -- 95
BEC -- 82
REG -- 92

DONE!

[Kim4]

@Journey to fate — I feel the same way wiht the appreciate/depreciate questions on foreign currency. Right now, I'm to the point where i reason through the question in my head, and then pick the opposite answer than what I think, and more often than not, that's the right one. It's my George Costanza method.

FAR -- 90
AUD -- 95
BEC -- 82
REG -- 92

DONE!

[Phoenixface]

@Kim4 Thank you!

Your way seems to be much easier and more logical. Good luck on BEC! The closest I got to passing this is a 71, and I'm taking BEC, REG, and FAR in this next window, because I don't want to lose credit or AUD in February. I know, ambitious and probably a bit stupid.

You seemed to have rocked FAR (congrats btw!) any advice on how to keep all that information in my head? When i study, I understand it, but a couple of weeks later when I'm doing more practice questions, I have forgotten how to do things. …..I just really want to be a CPA….been at this WAY too long.

Again, thanks in advance. 🙂

[Phoenixface]

@Kim4 Thank you!

Your way seems to be much easier and more logical. Good luck on BEC! The closest I got to passing this is a 71, and I'm taking BEC, REG, and FAR in this next window, because I don't want to lose credit or AUD in February. I know, ambitious and probably a bit stupid.

You seemed to have rocked FAR (congrats btw!) any advice on how to keep all that information in my head? When i study, I understand it, but a couple of weeks later when I'm doing more practice questions, I have forgotten how to do things. …..I just really want to be a CPA….been at this WAY too long.

Again, thanks in advance. 🙂

[Kim4]

With FAR and AUD, I had the Wiley test bank open at work during the day (shhhhh!) and every time I had a spare second (like, I'm waiting for my tax program to load….) I did a MCQ. I went ahead and included the subject that I was on for that test along with all the other ones that I've studied already. That seemed to help.

Also, I put my laptop on my passenger seat, turned it around, and re-listened to my Roger lectures on my way to and from work.

Those things were in addition to lectures, taking notes, and doing all the assigned MCQs.

I hope that helps! When are you taking REG? That's coming for me in August.

FAR -- 90
AUD -- 95
BEC -- 82
REG -- 92

DONE!

[Kim4]

With FAR and AUD, I had the Wiley test bank open at work during the day (shhhhh!) and every time I had a spare second (like, I'm waiting for my tax program to load….) I did a MCQ. I went ahead and included the subject that I was on for that test along with all the other ones that I've studied already. That seemed to help.

Also, I put my laptop on my passenger seat, turned it around, and re-listened to my Roger lectures on my way to and from work.

Those things were in addition to lectures, taking notes, and doing all the assigned MCQs.

I hope that helps! When are you taking REG? That's coming for me in August.

FAR -- 90
AUD -- 95
BEC -- 82
REG -- 92

DONE!

[Journey to Fate]

i posted this in the main forum but thought i could get some feedback here as well…

Well – I'm 1 month away.

As most of you are probably familiar with my story….I failed AUD back in feb, then went down points in April. With the help of all of you, I pinpointed areas where I was not studying correctly, revamped my study habits, watched all the videos for the first time during a study session and am approaching BEC at the end of the month. I have been tracking my hours that I have studied, watched all the lectures, took insane notes, rewrote notes and now am doing MCs. I have also been taking MCs i dont know and making note cards to add to all the formulas/ratios and other pertinent info. Does anyone else do this? I find i learn better if i have a note card for it. Do you guys think I should buy the cram? Less than 4 weeks to go and im ready to start fresh with the CPA exam again. I was down and out a few months back but thanks to everyone here and there support, i am back and ready to go after this come a few weeks from now.

Look forward to hearing from everyone on suggestions, ideas to help strengthen the info 1 month less than 4 weeks away from exam day..

BEC- 67, 69

[Journey to Fate]

i posted this in the main forum but thought i could get some feedback here as well…

Well – I'm 1 month away.

As most of you are probably familiar with my story….I failed AUD back in feb, then went down points in April. With the help of all of you, I pinpointed areas where I was not studying correctly, revamped my study habits, watched all the videos for the first time during a study session and am approaching BEC at the end of the month. I have been tracking my hours that I have studied, watched all the lectures, took insane notes, rewrote notes and now am doing MCs. I have also been taking MCs i dont know and making note cards to add to all the formulas/ratios and other pertinent info. Does anyone else do this? I find i learn better if i have a note card for it. Do you guys think I should buy the cram? Less than 4 weeks to go and im ready to start fresh with the CPA exam again. I was down and out a few months back but thanks to everyone here and there support, i am back and ready to go after this come a few weeks from now.

Look forward to hearing from everyone on suggestions, ideas to help strengthen the info 1 month less than 4 weeks away from exam day..

BEC- 67, 69

[Anonymous]

Does anyone know the number of questions and simulations that are thrown out for BEC? I'm guessing only 1 for the simulation but I have no clue for the multiple choice. If it makes any difference I'm taking it in New York, any ideas??

[Anonymous]

Does anyone know the number of questions and simulations that are thrown out for BEC? I'm guessing only 1 for the simulation but I have no clue for the multiple choice. If it makes any difference I'm taking it in New York, any ideas??

[Author]

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