[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[Anonymous]

Been feeling lost and like I cannot build any kind of momentum with this material. Has this happened to anyone before? With the other tests I could feel that I had a solid ground and some kind of understanding of the important subjects but with BEC I do not feel comfortable at all. This feeling is new to me so I think I am looking for some support lol! and I would like to know if its the review material or if its normal with BEC.

[monikernc]

Cortes – i feel the same way. Too many topics but no depth. By the time you scratch the surface and begin to grasp you are forced on to another topic. Someone aptly described it as being a jack of all trades but a master of none.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Anonymous]

I am testing on Feb 29…I hope is enough time. I see you have been posting for some time here, when are you testing?

[monikernc]

I started studying in dec for testing today but retention has been such an issue that i rescheduled for feb 27. Progress is slow for me on this one.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[payaza2000]

Hey guys currently studying for AUD (sit on Wednesday) but will be for BEC next, I was curious what people though of it. I find IT, Econ, and Financial Management challenging but interesting. Could one study for five weeks (Becker +Ninja Ten Point Combo) and pass (Feb 29 Test Date)? Or would I be best to wait for for new testing Window, and wait for my score on May 5. My worry is I fail AUD again, and also a combination of nervousness and wanting to get this all over with. Also the nonprofit I work with is having its Audit in March, so yeah. My brother also gets married in June, so I was gonna go home (DC Metro Area) than. And so I was worried that I failed BEC I wouldn't be able to retake it again till August (not really sure about rules of retaking failed tests)?

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[Anonymous]

@payazza2000 I am taking 6 weeks and I hope is enough. So far I have no idea why some people say that this is the easiest part (I guess that everybody is different) to me it ain't. So far I feel lost and uncomfortable with all the algebra and the randomness of topics. But everybody is different. Sorry for the lame input but I think that bc everybody is different then maybe to you is enough so I really cannot say one or the other 🙂

[Anonymous]

Pole Co. is investing in a machine with a 3-year life. The machine is expected to reduce annual cash operating costs by $30,000 in each of the first two years and by $20,000 in Year 3. Present values of an annuity of $1 at 14% are:
Period 1 0.8772
2 1.6467
3 2.3216
Using a 14% cost of capital, what is the present value of these future savings?

A. $59,600

B. $60,800

C. $62,900

D. $69,500

This is the explanation: (my actual question is below)

Present value of Year 1
and 2 savings of $30,000 = Savings x Annuity factor for 2 years
= $30,000 x 1.6467
= $49,401
Present value of Year 3
savings of $20,000 = Savings x Difference between second- and
third-year annuity factor
= $20,000 x (2.3216 -1.6467)
= $20,000 x 0.6749
= $13,498
Present value of
Years 1-3 savings = Present value of Year 1 and 2 savings +
Present value of Year 3 savings
= $49,401 + $13,498
= $62,899, or $62,900 rounded

This may be a dumb question but why the factors get subtracted? can anyone explain the logic behind subtracting the the 2nd and3rd year factors? I want to make sure that I know when I have to subtract them in other MCQs.

[GotCPA]

Based on potential sales of 500 units per year, a new product has estimated traceable costs of $990,000. What is the target price per unit to obtain a 15% profit margin on sales using the traditional markup calculation?

A.
$2,329

Incorrect B.
$2,277

C.
$1,980

D.
$1,935

Um. Is this an error? Why is this question answer not B?
I just saw on previous quarter BEC Study group with the same question and it seems the answer was 2,277?
Which one is correct?

[wombataholic]

@cortes The difference in the factors between years 2 and 3 represents the present value of year 3's cash flow. The only time you will ever need to know this is for questions that involve uneven cash flows over several years.

@GotCPA I came up with A:

990,000 traceable costs/500 units = 1,980 in traceable cost per unit

1,980 = .85x, where x=sale price.

1,980/.85 = x = 2,329.

Licensed CPA
Passed each section on the first try with Ninja Notes/MCQ/Audio

[Anonymous]

wombataholic do we substract them bc the factors are for an annuity? I ask bc I have examples on the Ninja book where uneven cash flows are given and the factors are not substracted. Btw thanks for getting back at me.

[wombataholic]

Yes, because they are for an annuity, you can subtract the differences between the factors for two years to get the PV/FV (depending on which direction you're going) for the year.

Licensed CPA
Passed each section on the first try with Ninja Notes/MCQ/Audio

[Zyx]

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:

A. overapplied by $4,000.

B. underapplied by $7,000.

C. underapplied by $2,000. correct

D. underapplied by $1,000.

This answer is from ninja and I don't understand why it does not consider direct-labor costs of $3,000 in process of job 150. If it take this cost into account, the answer would be A. Can someone help me please?

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[monikernc]

Zyx…The direct labor cost of $3000 were added to job 150 in the prior period. Ignore them for this period for calculating the overhead applied.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[juliakiwi]

Hi,

Can anyone confirm me whether on earth the compliance the financial report with US GAAP or other reporting rules is a reporting objective or a compliance objective according to COSO? Thanks very much.

[FAR_WARS]

@juliakiwi:

a neat trick is that anything FAR related (following GAAP) is usually a reporting objective.
REG related (laws and regulations) a compliance objective.
BEC related (efficiency) an operations objective.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Author]

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