[jeff]

Post by Another71.

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

[Anonymous]

This is annoying, whhhy isn't the $3,000 DL cost taken into account??

Mason Company uses a job order cost system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct-labor dollars. The rate for the current year is 200% of direct-labor dollars. This rate was calculated last December and will be used throughout the current year. Mason had one job, No. 150, in process on August 1 with raw materials costs of $2,000 and direct-labor costs of $3,000. During August, raw materials and direct labor added to jobs were as follows:

No. 150 No. 151 No. 152

---

---

---

Raw materials $ X $4,000 $1,000

Direct labor 1,500 5,000 2,500

Actual manufacturing overhead for the month of August was $20,000. During the month, Mason completed Job Nos. 150 and 151. For August, manufacturing overhead was:

Answer under applied by 2,000.

[WantThatCPA]

I just want to be sure about this because this is the way Becker makes the sims seem. we are not graded on the actual content of the writing? which means I could write something completely false about a topic but as long as it's written grammatically correct then I will receive credit? is this correct?

[OnMyWay732]

@Cricket, because you're calculating OH for the month of August based on the direct labor hours worked in August. Those 3,000 hours were hours worked for materials which they already had on Aug 1, so they must have been worked in previous months.

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[OnMyWay732]

@Want that CPA….yes and no. From what I've read, someone quoted that they could put “IRR means Interstate Roadside Reptiles” and would be correct. I'm sure you would receive points if it was well written and it was professional, however I'm sure the computer would tack on some points if you actually called it by the correct name. It's graded by a computer and it's looking for buzzwords.

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[Anonymous]

@ OnMyWay732 Thank you! that does make sense. I passed BEC before, lost credit and am taking it again next week…this is so brutal =(. From what it looks like folks taking it in Jan vs Feb had more conceptual vs calculation respectively. I should have taken it in Jan =/

[fightingforsanity]

Good luck Cricket! If you passed it once, you can definitely do it again. I agree. Judging from others' responses, it seems like the exam is a bit more calculation heavy this month. Ugh. BEC is so overwhelming with all these formulas and unrelated sections.

FAR - ✓
AUD - ✓
REG - ✓
BEC - ✓

Don't give up!

[Anonymous]

Help Please: the solution provided is reducing the initial investment of 100,000 by 45,000….where on earth is the 45,000 coming from?

Assume that management of Trayco has generated the following data about an investment project that has a five-year life:

Initial investment $100,000

Additional investment in working capital 5,000

Cash flows before income taxes for years 1 through 5 30,000

Yearly depreciation for tax purposes 20,000

Terminal value of machine 0

Cost of capital 8%

Present value of $1 received after 5 years discounted at 8% .681

Present value of an ordinary annuity of $1 for 5 years at 8% 3.993

Assume that Trayco’s marginal tax rate is 30% and all cash flows come at the end of the year. Calculate the net present value of the investment of the project.

Present value of annual cash flows $ 107,811

Present value of recovery of investment in working capital 3,405

Less: Initial investment ($100,000 + 45,000) ($ 105,000)

Net present value of the investment $ 6,216

[Anonymous]

I just took BEC today. My experience was ok. I felt better then how I felt coming out of audit. There was lots of COSO and net present value type questions.

[Holly]

I took BEC Wednesday, February 11th. Last night I failed in my dream :(. Feb 24th can't come quickly enough!

BEC - 79
REG - 85
AUD - 5/27/16

[Anonymous]

Finishing up my last chapter is Becker (B3- I didn't go in order). I should be done by tomorrow. I've been averaging in the 60s-70s on mcq. I'm planning on re-reading the becker book then hitting ninja mcq. I would like to get through as many ninja mcq as possible. My exam is on 2/28. Less than 2 weeks and still haven't looked at WC. Starting to stress out!

[waffle_house]

Augusta, Inc., expects manufacturing and sales of 70,000 units of product Maggie, its only product, to occur evenly over a 10-week period. Augusta pays for materials in the week following use. The balance of accounts payable for materials at the beginning of the 10-week period is $40,000. There are no beginning inventories. The fol­lowing information pertains to product Maggie for the 10-week period:

Sales price $11 per unit

Materials $3 per unit

Manufacturing conversion costs—Fixed $210,000

Variable $2 per unit

Selling and administrative costs—Fixed $45,000

Variable $1 per unit

Actual results are as budgeted, except that 60,000 of the 70,000 units produced were sold. Using absorp­tion costing, what is the difference between the reported income and the budgeted net income?

A.$10,000

Correct B.$20,000

C.$75,000

D.$95,000

I cannot figure out how they get COGS in this problem… Can someone enlighten me please.

[waffle_house]

Explaination to the top previous post. I'm having trouble figuring out how they got their “COGS” values…

Absorption costing is a method of costing in which manufacturing fixed costs are treated as product costs and assigned to the units produced. Fixed costs follow the units through work-in-process and finished goods as an inventoriable cost and are expensed through cost of goods sold (COGS) when the units are sold.

Unit sales 60,000 70,000

Revenue $660,000 $770,000

Less COGS 480,000 560,000

---

---

Gross profit $180,000 $210,000

Less Fixed selling/admn. 45,000 45,000

Less Variable selling/admn.60,000 70,000

---

---

Net profit $ 75,000 $ 95,000

The difference is pre-tax net income of $20,000 ($95,000 − $75,000).

[CPA2B_NJ]

I just need to vent. Exam is in 2 weeks and I'm scoring in the 50s. I'm freaking out. That's super low. Everything seems to be my weak areas, except Corporate Governance.

@waffle_house – I had the same question, someone helped me a few posts ago.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Anonymous]

I agree with you cpa2b_nj… read my post lol your not alone!

[SomedayCPA2015]

CPA2B and CPA 8488, Feeling the exact same way. I'm taking it for my third time on the 28th and you would think I've never seen the material, based on my scores. You're not alone!! We can do it!!!

REG - Passed
BEC - Passed
AUD - Passed
FAR - Passed!!!! I have my life back.

[Author]

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