[jeff]

Post by Another71.

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[CSmith242]

Taking BEC late January, just got my ninja ten point combo….about to do start some light reading and start listening to my ninja audio

[undeniabletwins2]

Doing BEC Jan 2015 as well. Just finish audit exam taking thanksgiving week off and then hopefully start my preparation. Need to buy the Ninja combo as well.

AUD - 58, 62, 56, OCT 2015
BEC - August 22,2015
FAR - TBD
REG - TBD

BECKER LIVE CLASSES, BECKER TEXTBOOKS,FINAL REVIEW, FLASHCARDS/NINJA MCQS, NOTES AND AUDIO/WILEY FOCUS NOTES.

IF U TRY AND U DONT SUCEED, TRY AND TRY AGAIN...GIVING UP IS NOT AN OPTION.

[CSmith242]

I just took audit 10/23/2014 and found out I passed. so i'm really pumped now.

[JS867_5309]

Hey all – I'm sitting for BEC on 01/03, and I've got a question from the NINJA book I can't make sense out of. I come to an answer that's not listed, and the explanation doesn't follow the math. Cost accounting is not my strong suit, so please help!

A company is considering outsourcing one of the component parts for its product. The company currently makes 10,000 parts per month. Current costs are as follows:

Per Unit Total

Direct Materials $4 $40,000

Direct Labor 3 30,000

Fixed Plant Facility Cost 2 20,000

The company decides to purchase the part for $8/unit from another supplier and rents its idle capacity for $5,000/month. How will the company's monthly income before taxes change?

A) Decrease $15,000

B) Decrease $10,000

C) Increase $5,000

D) Increase $10,000

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[Nikki.L]

Taking BEC on 01/03

[mtwst113]

@JS867_5309, what answer do they have listed?

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

Just started my BEC studies today. Hoping to take this piece in January.

[FabCPA]

I'm also aiming to take BEC beginning of Jan. I still haven't applied for my NTS just in case I'm not ready to take it in January. Not sure if I should pay for it now though…

Why can't NASBA IP the difference between a 74 and a 75??????

[Anonymous]

Mandrade, have you taken any other pieces yet?

If you have taken another piece, your NTS application will go through very quickly (just a couple of days). If this is your first exam, you'll want to apply sooner than later because it's a lengthy process for the initial application.

[FabCPA]

I took my first part (REG) last week. I have no idea if I passed but I'd rather start studying for BEC now rather than just waste time while I wait for my REG score.

Why can't NASBA IP the difference between a 74 and a 75??????

[Anonymous]

In that case you've got time to decide what you want to do.

When I applied for FAR, it took over a month to get my NTS. When I applied for AUD, it took less than 3 days to get my NTS. You're in no rush to apply just now. Go ahead and start studying BEC but don't feel like you need to apply for your NTS until you get your REG score.

[JS867_5309]

@mtwst113 – The answer listed is C. Except that I come to a decrease in net income of $5,000:

$70,000 of expenses saved

($80,000) cost of the part

$5,000 rental income

They have the exact same rationale listed, but come to C instead of my answer. I can't figure out if the book is wrong, or if I'm missing something. Cost accounting is my weak subject on this test so there's every possibility that I'm wrong!

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[mtwst113]

It has something to do with that $20,000 of fixed that fixed plant facility costs. Can you post their exact explanation?

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

i hope i can join this group

[JS867_5309]

Sure. Here it is (I can follow the first 2 paragraphs, but the 3rd is stumping me):

C – The product should be produced if the incremental cost to produce the product, including any opportunity cost of idle facilities, is less than the purchase price.

Since the fixed plant charge will not change due to this decision, it is irrelevant and should not be considered. The direct materials and direct labor costs ($40,000+ $30,000 = $70,000) are relevant costs. These incremental costs total $70,000/month to make the product, while they can buy the part for $80,000/month, an increase in monthly costs of $10,000.

However, the rental income from renting the idle capacity of $5,000 reduces the monthly cost of purchasing the pars, for a net increase in monthly income before taxes of $5,000.

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[Author]

Replies