[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

[monikernc]

farwars – it suggests that the purchasing dept bought defective or lower quality materials – probably coupled with a favorable price variance

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]

Morning all! Been back at it for an hour now. Can't lie, it is hard to keep myself motivated. I thought I would be super driven given that this is my last exam, but not so much…anyway, for those of you using Becker (hopefully I am not the only one), how do you feel about the formulas in B6? They are so random and there is maybe one problem per formula (total of 5 formulas) that I am not sure it is even worth memorizing them. I HATE the last chapter in Becker – it is always a hodgepodge of random crap that didn't fit into any of the other chapters. It's like a giant trash can.

Ok, off to memorize formulas for B1 – B3 (basically cost and all the finance formulas). That is my main goal for today – I have been referring to my cheat sheet too frequently. Overall I feel nervous. I feel like I don't know anything and that I have memorized all the MCQ (cue meltdown).

[monikernc]

about 100 in for the morning. did a 50 question set of all sections. scored a 90 but referred to notes on 3. stared blankly at the screen at one as though i had never heard of it before. now to do 50 question sets from selected sections. it is frustrating to me that for some questions i am unsure if they sourced from fin mgmt, strategic planning or ops mgmt. i hate this exam. it is basically easy but presented in an inefficient manner. i feel so disorganized.
have to work on pace. 2/27 is coming.

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

[stozzo88]

I agree, conceptually its not that bad but the questions are like hieroglyphics in some cases. Starting my final review today going though the chapters/questions again. The two week countdown begins.

FAR- 1-18-2016- 82
BEC- 2-22-2016- 81
REG- 4-11-2016- 84
AUD- 5-17-2016- 86

[FAR_WARS]

Can anyone explain what is going on here? What are we multiplying together and why?

Garo Company, a retail store, is considering foregoing sales discounts in order to delay using its cash. Supplier credit tenns are 2/10, net 30. Assuming a 360-day year, What is the annual cost of credit if the cash discount is not taken and Garo pays net 30?

360 days/(30-10) days
*
.02 discount/(1-.02) discount

= 36.7% annual cost of credit if cash discount is not taken

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

[Anonymous]

Farwars I think that the takeaway with this formulas is that the company looks at not paying with the discount rate as if the company was being charge that % of discount not at the principal amount but at the net amount. If the company bought a merchandise costing $100 and its offered a 2% discount if it pays in 10d then if the company does not take advantage of the discount it looks at its choice of holding its cash as if it was being charged 2% to the $98 not the $100. With this the companynwants to know if its convimient to take a loan with a lesser annual % of interest to pay with the discount.

In your mcq the 360 is divided by 20 because that is the periods that the interest is being charged to 360/20=18 periods in the year . And the .02 divided by .98 is to apply the real rate being charged since the 2% was to pay PRINCIPAL with discount but the company wants to know how much its being charged to the NET amount. .02/.98 = .0204.

If the company can borrow at a lesser rate than the 36.7% then it may take the loan since in theory at the end it still will be in better shape financially and operationally.

[KJ]

@ Cortes…I have just started to study for my first CPA exam (Going for FAR first)!! What CPA book have you been using for exams or material? What has been your game plan to pass all these exams? Any input will help and good luck with your last exam BEC.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[GotCPA]

Why are there so many contradicting answers in NINJA MCQ?
For example, looking back at previous BEC study group the correct answer to the question below was B 2277. Now it's saying its not the correct answer?

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

Link to same question on previous study group
https://www.another71.com/cpa-exam-forum/topic/bec-study-group-q2-2015-2016/page/9
from user nw123.

[monikernc]

Gotcpa, not sure what happened here but would guess that an error in the mcq's was found, reported and corrected. The correct answer is 990,000/.85 = 1,164,706, 1,164,706/500 = 2,329 units.
If you still need help post another question.

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

[monikernc]

Factoring and lockbox – why do i continue to struggle with these simple concepts. Aaaaarrgh!!!!! Stupid, really.

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]

@Got CPA the wording of the mcq is very confusing. The mcq asks for the profit margin on sales but asks for mark up calculation and they both are diferrent things. Proft margin is the profit earned on a product expressed as a percentage of total REVENUE from that product and markup is the retail price a product that is expressed as a percentage of COST.

Option A gets you 15% profit margin and Option B gets you the 15% mark up. At least this is what I think is going on. This link has more info on the difference between the two terms : https://www.investopedia.com/ask/answers/102714/whats-difference-between-profit-margin-and-markup.asp

@kanwal78 welcome to the marathon! With AUD I used the wiley book and ninja mcqs and notes. For REG and FAR I used only ninja. The ninja mcqs has been the main thing I have used for studying. I usually begin reading the whole book and doing some mcqs of the chapter while taking notes trying to gain an understanding of the concepts. the after finishing reading the book I start doing endless mcq and let the software tells me where I am weak. In that process I reread portions of the book that I am weak to reinforce the concepts and I take aditional notes. All my notes are embedded in the ninja notes and the days before the exam after doing endless mcqs for about two to three weeks I start reading more of my notes and start to bring down the volume of mcqs so i do not burnt out. I think it is important to know that with these tests there are no shortcuts. I suggest you find a strategy that bests fits your learning style knowing that there are no shortcuts and it takes a great amount of committment and sacrifice.

[Anonymous]

I'm starting my first 2 Classes With Becker BEC Feb 25 and AUD March 10.I'm international student and I got my master degree in accounting and auditing outside the US. I don't have any knowledge about economic concepts and all specific staff related to BEC. Is Becker material enough to sit for the BEC exam? could anyone give me good tips to review the material?
Thank you

[Anonymous]

Thought this was a good one for practice:

DJ Co. has a job order cost system. The following debits (credits) appeared in the Work in Process account for the month of March:

March 1, balance $ 12,000
March 31, direct materials 40,000
March 31, direct labor 30,000
March 31, manufacturing overhead applied 27,000
March 31, to finished goods (100,000)
DJ Co. applies overhead at a predetermined rate of 90% of direct labor cost. Job No. 101, the only job still in process at the end of March, has been charged with manufacturing overhead of $2,250. What was the amount of direct materials charged to Job No. 101?

A.
$2,250

B.
$2,500

C.
$4,250

D.
$4,725

[KJ]

@ cortes, thanks a bunch for your advise. Did you buy ninja 10 point combo? I have 2015 Material from Wiley and thinking of buying Ninja 10 point combo for all four. Would that be sufficient material? Thanks again for your input!!!

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[monikernc]

cortes, i can do the one you posted quickly, accurately, no pain, no problem… but i can't do this one without wanting to cry like a baby. ninja mcq section 3C3 just keeps poking me in the eye with a stick…

Handyman, Inc., operates a chain of hardware stores across New England. The controller wants to determine the optimum safety stock levels for an air purifier unit. The inventory manager has compiled the following data:

The annual carrying cost of inventory approximates 20% of the investment in inventory.
The inventory investment per unit averages $50.
The stockout cost is estimated to be $5 per unit.
The company orders inventory on the average of 10 times per year.
Total cost = Carrying cost + Expected stockout cost
The probabilities of a stockout per order cycle with varying levels of safety stock are as follows:

Safety Stock Stockout
(in units) (in units) Probability
———— ———- ———–
200 0 0%
100 100 15%
0 200 20%

The total cost of safety stock on an annual basis with a safety stock level of 100 units is:
Correct

A.$1,750.
B.$1,950.
C.$2,000.
D. $650.

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

[Author]

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