[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for BEC. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your BEC exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

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

[kimbyrs]

Hi! I'm new to the forum. I am taking BEC on December 1st. Thus will be my first attempt of any exam.

[kimphan]

Hello,

I have a question on Becker B4 M5 MC.18

Crisper plans to sell 80,000 bags of potato chips in June, and each of these bags requires five potatoes. Pertinent data includes:

Actual June 1 inventory. 15000 bags & 27000 potatoes
Desired June 30 inventory: 18000 bags & 23,000 potatoes.

I don't understand the explanation where Becker draw an arrow from the additions of 83,000 bags addition to (415,000) transfer out. In my mind, 83,000 bags addition would calculate to 415,000 purchase potatoes but my logic is wrong, why is that? Bottom line is I don't know why the answer is 411,000 instead of 415,000.

Please help. I really appreciate it.

Kim

[kenckang]

@kimphan look here. i solved it for you https://imgur.com/a/V0cop

use this:

Beg DM
+ Purchases
———-
DM Available
– End DM
———
DM Used

Beg FG
+ Production
———-
GAFS
– End FG
———
Cogs

If you remember that Production = DM Used then you should be able to solve all problems like these.

[kenckang]

woops. typo. should be 83,000*5 is 415,000. NOT 98000*5. but the rest of the stuff is correct.

[kenckang]

@jeff it looks like all the sims for the BEC ninja MCQ are essays. I've only gone through like 10 of the sims so i can't confirm for sure. are they all just essays?

[SONA]

Budget always starts with Sales forecast.

Therefore STEP 1
Sales forecast (Finished goods) 83000
+ Ending FG 18000
– Beginning FG (15000)
= Production needed for FG 83000 bags

STEP 2
Needed production X RM needed 83000 bags x 5 potatoes(RM) =415000
+ Ending RM 23000
– Beginning RM (27000)
= RM needed to purchase or transferred out = 411000

Let me know if you are not getting this solution. If you go through the becker step by step operation budget and write step by step method you will visualize it and it will be easy to remember.

[kimphan]

@Kenckang & Sona, you guys are the Best!!! I really appreciate your help. I got it now and be abke to solve other MC questions similar to this. I hope this will show up on the real exam.

Kim

[kimphan]

Hello,

I have another question on Becker B4M7 MC question cpa-04190

ChemKing uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material in the inventory were purchased for $105,000, and two units of raw material are required to produce one unit of final product. In November, the company produced 12,000 units of product. The standard allowed for material was $60,000, and there was an unfavorable quantity variance of $2,500. The units of material used to produce November output totaled:

The answer is 25,000 units. I don't follow Becker's explanation. I am confused with their PURE, DADS, SAD Mnemonic. Please help!

Kim

[kenckang]

im stumped. can you post the explanation?

[SONA]

Questions asked Units of material used for production? That means Actual Quantity Used?
Here's the solution:
Given: MQV = -2500,
SR = $60000 (we need to find out STd. Rate per unit) So $60000 / (12000 units produced x 2 units of RM to
produce 1 unit of final product)
Therefore SR = 2.5p.u.
The formula :
MQV=SR(Std. Qty. allowed for production – Actual quantity used)
-2500 = 2.5(24000-AQ used)
-2500/2.5 = 24000-AQ used
-1000-24000 = -AQ used
-25000 = -AQ used
25000 = AQ used ( minus signs cancel out)

I hope this solution will help you a bit.

[kenckang]

^thanks. i was so close. didn't realize i had to multiple 12000 by 2 to get the right quotient 60k/24k

[kimphan]

@ Sona, Thank you so much!!! Do you have tips and formula regarding this topic that you can share? The mnemonjc PURE, DADS, SAD didn't help…

@Kenckang, thanks for trying to help me 🙂

Kim

[kimphan]

Hello,

I finally understand the Mnemonic and want to share with our forum:

P – Price Var (DM). DA = Diff x Actual
U – Usage Qty Var (DM). DS = Diff x Standard
R – Rate Var (DL). DA = Diff x Actual
E – Efficiency Var (DL). DS = Diff x Standard

SAD = Standard – Actual = Difference

Apply “DADS” twice to set up the variance formula.

B4 M7 Variance Analysis was so confusing to me. Now I think the Mnemonic will help me with the second attempt.

Kim

[Williams]

I honestly don't know break-even, CVP or variance analysis very well. I'm just hoping that my testlets are light on those subjects. I've heard from a couple of people that their testlets didn't have any questions on cost accounting and that's what i'm hoping for on mine 8/5/2017. I've been studying for over three months and know the other material very well, my brain is to fried now to try and learn the last 3 Study Units in gleim, which I know are going to be brutal. Wish me luck everyone.

[kenckang]

good luck. ive heard similar reports. lots of coso and IT related stuff. its impossible to really study for the IT portion. its either you know some obscure IT term or you dont.

[Author]

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