[jeff]

Guess I’ll kick it off!

Scheduled to take BEC on 4/19. It’s my last test so I’m putting as much study time in as I can. If I pass I get promoted, if I don’t pass I don’t get promoted, so the pressure is on!!

Good luck to everyone taking BEC this quarter!

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

[sarahem]

I'm working through this problem in CPAExcel and I can't seem to figure out how they came up with the CM. Can anyone shed some light on it?

A ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year, the company expects the following changes: sales price per cup to be $9.00; variable manufacturing costs to increase 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 company expect to sell this year?

A. 21,000

B. 21,600

C. 21,960

This incorrect answer could be due to multiple errors. This is a detailed problem that requires working backwards through a contribution margin (CM) formatted income statement to determine total CM of $113,400. CM per unit ($5.25) is given by subtracting variable cost ($2.25) from price ($7.50). Year one units sold of 21,600 is calculated by dividing total CM ($113,400) by CM per unit ($5.25). Year two units sold (22,600 units) is equal to year one units plus 1,000 units.

D. 22,600

This is a detailed problem that requires working backwards through a contribution margin (CM) formatted income statement to determine total CM of $113,400. CM per unit ($5.25) is given by subtracting variable cost ($2.25) from price ($7.50). Year one units sold of 21,600 is calculated by dividing total CM ($113,400) by CM per unit ($5.25). Year two units sold (22,600 units) is equal to year one units plus 1,000 units.

AUD - 4/3/13-60 Retake 7/2/13-72 Retake 11/13/13-74 Retake 5/14/14
BEC - 5/30/13-76
FAR - 2/14/14-79
REG - 4/4/14

[WhenISay]

Thanks Man. I realized the 120% +150 applies to the raw materials and not necessarily the production itself.

This is a quick RogerCPA video that may help for the WC if you haven't seen the video already.

https://www.youtube.com/watch?v=Eh7O47_9IJQ

FAR: 87 - 2/19/13
REG: 91 - 4/2/13
AUD: 99 - 5/2/13
BEC: 87 - 5/30/13

[Anonymous]

sarahem: This problem tripped me up at first, also but after some practice it makes total sense. So its asking what they will produce this year but if you notice in the problem it says that they are going to produce 1,000 more products this year than last. So the starting point is to figure out what exactly they produced last year using last years data. You find the CM for last period 7.50-2.25=5.25 and than you back your way into the Fixed cost amount by taking the 20,000 BE point x 5.25= 105,000. Then you see they had Net Income of 5,040 so given the 40% tax rate you have before tax income of 8400 so in total your units produced would be 113400 (105,000+8,400) / 5.25= 21,600 units. Since the problem stated they were going to produce 1,000 more units this period… your answer is 22,600.

Whenisay: Thanks for the video. I would be lying if I said I was ready to take BEC. I've done all the Becker MCQ's twice (working through them a 3rd time) reread the book and feel comfortable about the material but I'm terrified of all the people saying that they didn't think they were prepared using only one study program. If I fail I am going to have to supplement with Ninja or WTB for sure.

[Anonymous]

I've never seen Roger before, but he sure is enthusiastic about the CPA exam… I feel like I could watch him for hours and not get bored haha.

[Anonymous]

@bcjasper09…You seem to have a handle on how to solve most questions…

You could head to the library or bookstore and skim through the BEC Wiley CPA Review book….It has over 700 questions…It's much smaller than the other sections so in a few sittings you could go through all the questions.

Another 71 also selling BEC test bank but it is $87.

https://www.another71.com/products-page/bec-software/2011-wiley-bec-online-software/

Good luck.

[gobias]

Which of the following statements is/are correct?

a. Choices “b” and “c” are correct.

b. A virus is a piece of computer program that inserts itself into some other program. Virus protection software can be utilized to protect against viruses. One of the benefits of such software is that it can be installed and forgotten, allowing security personnel to devote their attention to other areas.

c. A denial-of-service attack is an attack in which one computer bombards another computer with a flood of information.

d. Phishing is the sending of phony emails to try to convince people to divulge information.

Explanation

Choice “a” is correct, which means that both “c” and “d” are incorrect.

Choice “b” is incorrect. A virus is a piece of computer program that inserts itself into some other program. Virus protection software can be utilized to protect against viruses. One of the benefits of such software is definitely not that it can be installed and forgotten. Virus protection software must be continually updated because new viruses are being continually developed. Security personnel who install and forget virus protection software will soon be looking for new jobs.

Choice “c” is incorrect. A denial-of-service attack is an attack in which one computer bombards another computer with a flood of information intended to keep legitimate users from accessing the target computer or network.

Choice “d” is incorrect. Phishing is the sending of phony emails to try to convince people to divulge information like account numbers and social security numbers. It is often accomplished by luring people to authentic-looking but fake websites.

---

What????

F - 86
R - 90
A - 97
B - 91

[Anonymous]

Alright we're in the home stretch…. if you haven't seen So1913s post on the BEC exam experience it was somewhat refreshing. I am not really sure what my plan of attack is today and tomorrow but it will consist of copious amounts of cramming and rereading my troubled areas. I might even rewatch some lectures. I've been through the MCQ's a total of 3 times so I feel like the Marginal Cost > Marginal Benefit at going through a 4th time. Its times like these I wish I had more resources to buy more study materials! Good luck to everyone today, and here's to getting in a productive power weekend!

[Theo]

@bcjasper09 You seem to be in a great spot and ready for BEC! I am doing the Wiley MCQs today and will just keep working MCQs 'till exam day. I have listened to most of the Roger lectures just so I don't have to listen to Olinto again. Towards the end I will just go over my weak areas. I started a new job last week so its been “different'. I guess I have to get most of my studying done on the weekend now.

BTW who's ready for results week?!

AUD 01/17/2013 (92)
REG 02/28/2013 (85)
FAR 04/26/2013 (85)
BEC 05/30/2013 (88)

[Anonymous]

Theo: Congrats on the new job! I don't know if its going to be a good/bad thing that I feel so ready right now. I am worried that if I just coast and don't study 10+ hours a day I will lose all the information I have packed into my head. I am just doing the MCQ's released for 2006-2013 from the AICPA through Becker's website. Most of them are in Becker but some aren't so I feel as if its a win!

If I get a question that requires you to compute the PV Annuity factor I might puke. I know the formula but do you think I could ever do it on one of those stupid calculators… Nope. I'm hoping the Accounting Gods will look kindly on the lack of technological feasibility and just provide the PV factor for questions that require it like they have on all past exams.

[Anonymous]

What up Wiley. Just utilizing the WTB Free Trial because doing Becker MCQ's is no longer beneficial. If I fail BEC I'm definitely buying Jeff's Ninja package that includes his stuff and the WTB. There are several questions in here not touched by Becker such as the Step Allocation Method for allocating department costs. Thankfully it took me about 2 seconds to remember how to do it from Cost Accounting. I'm slightly disappointed but hope that the stuff Becker did not cover that is in the test bank has a low probability of being tested.

[Theo]

Thanks @bcjasper09. Good luck on Wednesday. I wish I was taking mine on Wednesday. That way I wouldn't have to be worrying about checking my score before my next exam.

AUD 01/17/2013 (92)
REG 02/28/2013 (85)
FAR 04/26/2013 (85)
BEC 05/30/2013 (88)

[Anonymous]

Theo: I would just check it. To be honest even if you failed (which I doubt) the anger will have likely worn off by the 31st and will instill a drive to pass BEC! I hope I walk out of Prometric feelin' fresh and check my score and see a pass for FAR. Than its just time to drink and pray that I passed BEC.

[leha15]

@WhenISay – looks like we are on the same path. retook aud 5/1 and taking bec 5/29… i am so burnt out! are you going to check your aud score before taking bec??? i am determined not to until i am walking out of bec!

B: 81! May 2013
A: 70 Feb 2013 / 75! May 2013
R: 94! May 2012
F: 72 Aug 2012 / 83! Nov 2012

[Anonymous]

I thought the same thing. But I don't have that descipline I will be too distracted reading everyone posts. I wish I was taking Thursday off. So I can throw myself on the ground if necessary. Visualizing a pass, a pass, a pass. Oh God I am gonna throw up, after my last experience with audit.

When you reschedule an exam, is 5 days or 5 working days?

[WhenISay]

@leah15 – Yea, I'm definitely burnt out from studying for the last 5 months straight (well with days off here and there) that I just want to be done with this stuff! Although I didn't feel too confident walking out of AUD, I'm wayy too anxious to be able to hold off on checking my score until after I take BEC. My studying for BEC has been getting worse and worse as I get closer to the day (the great weather outsides not helping), so I hope LUCK plays its part with passing both AUD and BEC where I can have June off before I start work in July!

FAR: 87 - 2/19/13
REG: 91 - 4/2/13
AUD: 99 - 5/2/13
BEC: 87 - 5/30/13

[Author]

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