[jeff]

Welcome to the Q4 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

[lizbette]

stuck on this MCQ from Becker. can anyone please help?

In a traditional job order cost system, the issue of indirect materials to a production department increases:
a) factory overhead applied
b) work in process control
c) stores control
d) factory overhead control <—this is the correct answer

what are these control accounts? are they assets/liabilities or contras? how do they work in conjunction with job order costing? i don't really get it.

REG (8/11/16) -
FAR (TBD) -
AUD (TBD) -
BEC (TBD) -

[rencpa]

Hi lizbette,

Go on B3 -14 (Becker book, ch 3). There is are bunch of different T-accounts. One of them, the biggest at the bottom, is Manufacturing Overhead.

Left side = Actual cost incurred
Right side = Overhead applied (this is the one that you calculate based on the formulas or is given)

Any INDIRECT (material or labor) are increasing the Actual cost incurred.There are other factors that increase this side as well (listed in the book)

There is also WIP T-account. Take a look how all of these costs flow from RM (direct and indirect) to WIP to FG to CGS. And when and what goes to Manufacturing Overhead, which is a controlling account ==> GL.

Honestly, I have no clue about the stores control? But I have never heard about it, so I decided it is not important 🙂

Don't overkill yourself with this question. I believe the purpose of this question is to understand the flow of the costs. Hope it helps. If not, yell…

[Anonymous]

Thank you @RenCpa and @Kev! Your explanation help.

[jeff]

Ask the NINJAs: How to Recover from a 36 on the CPA Exam

Ask the NINJAs: How to Recover from a 36 on the CPA Exam

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

[Paige]

I took BEC October 20. I used mostly Becker to study and then used the last 2 weeks of review studying Ninja multiple choice. I feel that Becker did not prepare me for the IT portion of the exam and am really happy that I had looked over Ninja's IT multiple choice prior to the exam, it saved me! Overall I thought the multiple choice and written portions were straight forward and felt prepared. I found the simulations to be very difficult, I feel like the simulations is what will keep me from a passing score.

[Anonymous]

I experience the same thing. Try studying the AICPA simulation sample for the simulation portion:
https://www.aicpa.org/BecomeACPA/CPAExam/ForCandidates/TutorialandSampleTest/Pages/default.aspx

In terms of the IT portion, I felt the same way. Becker definitely did not prepare me for that part. However, next time around i'm going read more about router, switches, packet, cloud, firewall, randsom ware, XBRL, and other stuff that's been occurring in the news lately. Good luck!

[Anonymous]

Hi All,

Can someone please explain to me this question? Thank you!

Historically, Pine Hill Wood had no significant bad debt experience with its customers. Cash sales has accounted for %10 of total sales , and payment for credit sales have been received as follows:
40% of credit sales in the month o sale
30% of credit sales in the 1st subsequent month
25% of credit sales in the 2nd subsequent month
5% of credit sales in the 3rd subsequent month
forecast for both cash and credit sales is as follows:
Month……………Sales
___________________
January……….$95,000
February………$65,000
March………….$70,000
April…………….$80,000
May…………….$$85,000
Due to deteriorating economic conditions, Pine Hill Wood Products has now decided that's its cash forecast should include a bad debt adjustment of 2% of credit sales , beginning with sales for the month of April. The total expected cash inflow in April related to sales made in April will:
A. Be unchanged.
B. Decrease by $1,260.
C. Decrease by $1,440.
D. Decrease by $1,530.

[Kev]

@cpahenry I don't think the cash inflow changes with bad debt so the answer should be A

[rencpa]

@CPAHENRY,

My answer is C because of “now decided that's its cash forecast should include a bad debt adjustment of 2% of credit sales , beginning with sales for the month of April”

Normally, ignore BDE. Period. This question has a special note to include it. This means you need to consider it.

Because 10% of total sale is cash sale, so 90% = credit sale (simple math).

April sale $80K ==> Credit Sale = $80 * 90% = $72K

The question doesn't ask about any collection, just a change… so $72K (credit sale) * 2% = $1.44K
It is decrease because when you record it (cash basis), you are going to:

Debit BDE 1,440
Credit Sales 1,440 (your sales is going to lower because your question wants to consider BDE)

Once again, if a question is silent about the BDE, just ignore in your calculation. Do not think you always do what I did in this question.

Hope I am clear. If not…. ask, I can try to explain a different way.

[rencpa]

It should have been dr BDE, cr AR (cash basis)

When you receive the cash: dr Cash, cr AR

This is how you lower your collections.

*I* made a mistake 🙂 This all JEs are under cash basis (accrual will dr BDE, cr ADA)

[Anonymous]

Thank you @rencpa and @kev. Rencpa is correct.

Correct me if i'm understanding this correctly.

The firm is now including the bad debt expense with its credit sales collection, therefore =80,000*.9*.02=1,440

I think I reading it incorrectly before. Thank you again!

@rencpa and @kev how are you guys preparing for the TBS? This part really scares me!

[rencpa]

Yes, Henry, “The firm is now including the bad debt expense”

First, I focus on understanding each topic by reading the Becker book. Then I make notes, work questions, simulations. Yes, I absolutely, check the Skills Practice provided by Becker. My personal theory is that if I understand a topic, I should be able to answer either MCQ or simulation. Is this a way to study? I am not sure for BEC. It worked for me with other exams.

I try to ask myself additional questions based on what I work on.

Today, I just heard a bad news from my family in Europe. I may need to fly this weekend and I may not be able to take the exam this testing window. Hope it will not be the case, I will see… Study hard. Wish you good luck now in case I disappear for a while.

[jeff]

Ask the NINJAs: FAR CPA Exam Review Taking Too Long

Ask the NINJAs: FAR CPA Exam Review Taking Too Long

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

[runegoblet3xx]

I'm using Becker to study for BEC. Used it for FAR and REG, passed both. I took AUD earlier this month and I seriously have no idea if I passed that one.

But as for the study materials for BEC this time around, I'm in B2, and I feel like in the first module, a good half of the questions I got wrong simply because the text never touched on it. Anybody else feel the same way? I think that's incredibly frustrating that they ask you a boat load of questions without you having any knowledge of them.

[Maria]

Does anyone know if BEC writing are graded on technicality and content accuracy? Someone told me it’s only graded on writing ability, and that I can write bul***t on it and I can still get good grades based on writing skills alone.

[Author]

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