[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

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

[scarletknight91]

Cracked, i have two friends who studied for less than 2 weeks on this exam and passed first try so just cram away until the 29th. its possible if you retain information well

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[OXZ]

scarletknight91, Thank you so much for the detailed explanation!!! I really appreciated it! I wasn't THINKING deeply.

AUD - Pass
FAR - Pass
REG - Pass
BEC - May 28 2014

[titoav15]

A little confused… can anyone tell me an example where you would use process costing and example where you would use job order costing?

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[mjp44]

@tito…process costing is assigning costs to a continuous manufacturing process. the best example i have heard is a brewery. A brewery is a continuous manufacturing process of beer, there really is no individual/identifiable job. Job costing is when you assign costs to an individual job. An example, would be airplane manufacturer.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[scarletknight91]

titoav15, what the post above me described is correct. i like to dumb it down and think of them as this:

process costing = mass production (ie bottling company, brewing bud lights works too)

job costing = massive/single project (ie working on a Boeing for 3 years, or acct firm working on an audit for a major company)

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[titoav15]

@mjp44, @scarletknight91 thanks, its crystal clear now, you guys rock!

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[titoav15]

500 challenge will be complete in 50 mcqs!

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[titoav15]

Got one more question…

Kode Co. manufactures a major product that gives rise to a byproduct called May. May's only separable cost is a $1 selling cost when a unit is sold for $4. Kode accounts for May's sales by deducting the $3 net amount from the cost of goods sold of the major product. There are no inventories. If Kode were to change its method of accounting for May from a byproduct to a joint product, what would be the effect on Kode's overall gross margin?

ANSWER: Gross margin increases by $3 for each unit of May sold

Explanation:

When May is treated as a byproduct, its $3 net realizable value (i.e., $4 – $1) is subtracted from the main product cost so only that $3 is included in the computation of gross profit for the main product.

However, when May is treated as a joint product the entire $4 selling price enters into the computation of gross margin. The $1 is not subtracted in computing gross margin. This $1 shows up in selling costs which appear after the computation of gross margin.

The effect of a change from byproduct to joint product status is a $1 increase in gross margin. It should be noted that bottom line net income does not change, however.

Can anyone dumb this down for me? I think I am a little rusty on this stuff.

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[mjp44]

@tito…i remember this friggin question. Took me awhile to understand it. Basically, with a by-product there is a difference in how you recognize it's selling expense between by-product and joint costing. With by-product, the selling expense($1) is included in COGS and with Joint product the $1 is an operating/selling expense. Therefore, with joint costing the $1 expense is not included in gross margin sales- cogs, hence GM is $1 greater $4 sales – 0 COGS.

Im throwing in the towel!…taking this thing tomorrow. I pray i make it alive!

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[titoav15]

thanks and good luck mjp44! 🙂

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[shankysays]

New here 🙂 I just took BEC yesterday, reeeeally hoping I passed this time. Last time I got a 72 (ugh)…in my opinion it's a really difficult section to study for; the material is just all over the place. Good luck to everyone in here taking it soon!

BEC - 72, 82! ✓
FAR - 80! ✓
AUD - 70, 92! ✓
REG - 74, 78! ✓

Licensed CPA 5/2015

[Anonymous]

Mjp..hope BEC treated you well my friend. Let us know how it went.

The nervousness is beginning to set in for me. I have 17 days till I take what could possibly be my last section of the exam. Normally, I don't get nervous till the morning of the exam….could be bc it's my last section…or maybe bc I am waiting to hear back about 2 interviews. Why did I do that to myself? Last test + 2 pending jobs = utter nervousness!!!

[Anonymous]

NYC said:

“I had no financial management questions – not one! Some of my Coso questions were not covered by Wiley. I'm hoping they were pretest because they went above and beyond the text. I also had no IT questions.”

I had a similar experience… very light on financial management and IT. Not zero, but light. COSO everywhere, some of which I didn't feel like were covered by CPAexcel, but admittedly that was one of my first topics and my final review of corporate governance was fairly cursory.

We'll see…hoping for a result like yours!

[scarletknight91]

titoav15, if you increase by a dollar for each unit sold, why is the answer $3? shouldn't it only be $1?

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[scarletknight91]

for by product costing it would be three dollars increase per unit sold correct?

and if you switch to the joint costing, only the 4 dollars would be recognized. meaning a net of one dollar would be added to the gross margin if you switch methods.. how did they get $3?

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[Author]

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