[jeff]

BEC Resources:

Free BEC Notes & Audio – https://www.another71.com/cpa-exam-study-plan

BEC 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

BEC Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[Anonymous]

Hi everyone. I'm taking BEC again in less than a month and getting pretty overwhelmed with all the formulas. I didn't memorize many the first time I took BEC and I believe that's why I failed. This is too much information to retain.

[Anonymous]

Hello everyone. Im taking BEC in a couple of days and came across a problem when calculation ending WIP for equivalent units using the weighted average method.

Kimbeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May:

Units

Beginning work-in-process inventory, May 1

16,000

Started in production during May

100,000

Completed production during May

92,000

Ending work-in-process inventory, May 31

24,000

The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs.

The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs.

Costs pertaining to the month of May are as follows:

Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240.

Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.

Using the weighted-average method, the total cost of the units in the ending work-in-process inventory at May 31, 1995, is:

a. $155,328

b. $156,960

c. $154,800

d. $153,960

The answer states B but the explanation gives no clue how they applied the weighted average and got the unit costs to get the amount. I know you calculate separately but I am stuck at the equivalent units of (Materials:21600, Conversion Costs 9600)

[Anonymous]

Hello everyone. Im taking BEC in a couple of days and came across a problem when calculation ending WIP for equivalent units using the weighted average method.

Kimbeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May:

Units

Beginning work-in-process inventory, May 1

16,000

Started in production during May

100,000

Completed production during May

92,000

Ending work-in-process inventory, May 31

24,000

The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs.

The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs.

Costs pertaining to the month of May are as follows:

Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240.

Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.

Using the weighted-average method, the total cost of the units in the ending work-in-process inventory at May 31, 1995, is:

a. $155,328

b. $156,960

c. $154,800

d. $153,960

The answer states B but the explanation gives no clue how they applied the weighted average and got the unit costs to get the amount. I know you calculate separately but I am stuck at the equivalent units of (Materials:21600, Conversion Costs 9600)

[JustWant 75]

@dotaganza i think if you solve for the DM and Conversion cost (Labor + OH) separately, you will get the correct answer.

Find the Equivalent units for DM and Conversion separately:

DM: Completed 9,200 + Ending 21,600(24,000*.9) = 113,600

Conversion: Completed 9,200 + Ending 9,600(24,000*.4)=101,600

Then find the total cost for DM and Conversion cost separately:

DM: $54,560 Beg cost +$468,000 Current Cost = $ 522,560

Conversion: $20,320 Beg DL + $15,240 Beg OH+$182,880 Current DL + $391,160 Current OH =$609,600

Solve for cost per equivalent:

DM: (Total cost /Equivalent units) $ 522,560/113,600 = $4.60

Conversion: (Total cost /Equivalent units)$609,600/101,600 = $6.00

Now you can solve for total cost of units in ending inventory:

DM: (Ending inventory * cost per equivalent unit) 21,600 * $4.60=$99,360

Conversion: (Ending inventory * cost per equivalent unit) 9,600 * $6.00 =$57,600

Total of DM and Conversion in ending inventory = $99,360+$57,600 =$156,960

Hope this makes sense

Becker, Ninja Audio + Notes

FAR: 80 (Aug 2013)
AUD: 91 (Nov 2013)
BEC: 79 (Feb 2014)
REG: 80 (May 2014)

[JustWant 75]

@dotaganza i think if you solve for the DM and Conversion cost (Labor + OH) separately, you will get the correct answer.

Find the Equivalent units for DM and Conversion separately:

DM: Completed 9,200 + Ending 21,600(24,000*.9) = 113,600

Conversion: Completed 9,200 + Ending 9,600(24,000*.4)=101,600

Then find the total cost for DM and Conversion cost separately:

DM: $54,560 Beg cost +$468,000 Current Cost = $ 522,560

Conversion: $20,320 Beg DL + $15,240 Beg OH+$182,880 Current DL + $391,160 Current OH =$609,600

Solve for cost per equivalent:

DM: (Total cost /Equivalent units) $ 522,560/113,600 = $4.60

Conversion: (Total cost /Equivalent units)$609,600/101,600 = $6.00

Now you can solve for total cost of units in ending inventory:

DM: (Ending inventory * cost per equivalent unit) 21,600 * $4.60=$99,360

Conversion: (Ending inventory * cost per equivalent unit) 9,600 * $6.00 =$57,600

Total of DM and Conversion in ending inventory = $99,360+$57,600 =$156,960

Hope this makes sense

Becker, Ninja Audio + Notes

FAR: 80 (Aug 2013)
AUD: 91 (Nov 2013)
BEC: 79 (Feb 2014)
REG: 80 (May 2014)

[jw_83]

My 2nd attempt at the BEC exam is tomorrow. I went over budgeting this morning and cost accounting at lunch. I think I will just read over my notes this evening and go to be early. Then before the exam rewrite my formulas one last time. This is my last exam and I am so ready to be done!

REG - 64, 72, 81!
FAR - 77
AUD - 79
BEC - 72, 79! And Done!

[jw_83]

My 2nd attempt at the BEC exam is tomorrow. I went over budgeting this morning and cost accounting at lunch. I think I will just read over my notes this evening and go to be early. Then before the exam rewrite my formulas one last time. This is my last exam and I am so ready to be done!

REG - 64, 72, 81!
FAR - 77
AUD - 79
BEC - 72, 79! And Done!

[Anonymous]

This is my first time posting on this website although I have utilized this site for about two years now. I have BEC aas my last exam. But because of my lack of discipline I waited for the last minute. So, if I fail I will have to retake Reg. But this is not my concern due to my prodigious amount of confidence. So, now after my little background here is a question from Becker I am little confused with. What is the difference between the $8 standard variable OH cost and the $9 standard direct labor rate?

I would post the whole question but I cannot copy and im too lazy to write word for word. But here is the necessary info……….

They give a box with the “unit standard factory overhead costs” of variable (4 hours at $8 an hour) and fixed costs ($irrelevant).

Then on the bottom they give “following additional info”:

22,000 pumps prodcued although 25,000 is potential output

94,000 direct labor hours worked at a total cost of $940,000

Standard direct labor rate of $9 an hour

standard direct labor time is 4 hours a unit

variable oh costs incurred of $740,000

FOH irrelevant

They then ask for the variable oh efficiency variance……..

The answer is $48,000 unfavorable which they use the $8 an hour rate. I understand there calculation but what I dont understand is what is the difference between the standard factory overhead variable cost of $8 and the standard direct labor rate of $9.

Sorry for the long post……and appreciate your responses….

Thanks

[Anonymous]

This is my first time posting on this website although I have utilized this site for about two years now. I have BEC aas my last exam. But because of my lack of discipline I waited for the last minute. So, if I fail I will have to retake Reg. But this is not my concern due to my prodigious amount of confidence. So, now after my little background here is a question from Becker I am little confused with. What is the difference between the $8 standard variable OH cost and the $9 standard direct labor rate?

I would post the whole question but I cannot copy and im too lazy to write word for word. But here is the necessary info……….

They give a box with the “unit standard factory overhead costs” of variable (4 hours at $8 an hour) and fixed costs ($irrelevant).

Then on the bottom they give “following additional info”:

22,000 pumps prodcued although 25,000 is potential output

94,000 direct labor hours worked at a total cost of $940,000

Standard direct labor rate of $9 an hour

standard direct labor time is 4 hours a unit

variable oh costs incurred of $740,000

FOH irrelevant

They then ask for the variable oh efficiency variance……..

The answer is $48,000 unfavorable which they use the $8 an hour rate. I understand there calculation but what I dont understand is what is the difference between the standard factory overhead variable cost of $8 and the standard direct labor rate of $9.

Sorry for the long post……and appreciate your responses….

Thanks

[jeff]

bump

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

[jeff]

bump

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

[jpowell31]

I was hoping you would get a response @Deozzman101. I have been redoing variance problems over and over and everytime I get to that one it throws me off completely. Now I know the answer so it's not helpful.. hoping this bump will encourage someone to help.

I think I understand otherwise as well but it's not sticking so any clarification @Deozzman101 would help: the same info is provided for the spending variance and only the $9 is used…which is probably why you're confused as well. But also, how do we know whether to use the actual DL hours provided or the actual DL hours given the amount actually produced x 4 for the P/spending variance? My exam is Monday and I am determined to understand the variances completely by then!

[jpowell31]

I was hoping you would get a response @Deozzman101. I have been redoing variance problems over and over and everytime I get to that one it throws me off completely. Now I know the answer so it's not helpful.. hoping this bump will encourage someone to help.

I think I understand otherwise as well but it's not sticking so any clarification @Deozzman101 would help: the same info is provided for the spending variance and only the $9 is used…which is probably why you're confused as well. But also, how do we know whether to use the actual DL hours provided or the actual DL hours given the amount actually produced x 4 for the P/spending variance? My exam is Monday and I am determined to understand the variances completely by then!

[JustWant 75]

@Deozzman101 i'm not sure if i'm correct but when the question asks to solve for “variable OH”, i only use variable costs. When the question is asking for DL efficiency and rate variance, then i use the DL rate. @jpowell31, can you copy and paste the question if possible so i can take a look. I worked on a lot of variance MCQ's today and i feel like it's finally sticking.

Becker, Ninja Audio + Notes

FAR: 80 (Aug 2013)
AUD: 91 (Nov 2013)
BEC: 79 (Feb 2014)
REG: 80 (May 2014)

[JustWant 75]

@Deozzman101 i'm not sure if i'm correct but when the question asks to solve for “variable OH”, i only use variable costs. When the question is asking for DL efficiency and rate variance, then i use the DL rate. @jpowell31, can you copy and paste the question if possible so i can take a look. I worked on a lot of variance MCQ's today and i feel like it's finally sticking.

Becker, Ninja Audio + Notes

FAR: 80 (Aug 2013)
AUD: 91 (Nov 2013)
BEC: 79 (Feb 2014)
REG: 80 (May 2014)

[Author]

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