[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for BEC. 🙂

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

[lavinia_tataran]

Just took BEC today for the first time after studying for a month the material from Becker. I studied every day, all day every weekend and the whole last week about 4-5 hrs each day just doing comprehensive mqs. A few nights ago i read on here that a lot of people felt like the questions they received on the exam day were very different from what they have studied. The exact same happened to me. i felt like i guessed on so many questions that it scares me. I was getting 80s on the mqs in becker, but i felt like the questions in the test didn't touch 80% of the stuff becker was saying it's important. I was planning on starting to study for audit asap and take it by the end of febr. However, after getting out of this test i am not sure if i should keep studying for BEC, since i dont find my grade until the end of the month i think. Any suggestions?

[jelani1911]

@Lavinia

Don't worry yourself too much, you probably did great!!! stay focused and start studying for audit since this is the last quarter before exam changes.

[CPASF1]

thanks anyatver! it's okay as long the reasoning makes sense

[sixers215]

Currently studying to sit for BEC in Feb.
Quick question regarding studying tips….(if using becker) does anyone find it more helpful to complete the corresponding homework questions as you complete each sub-topic of each chapter vs. completing all of the homework questions after completing all of the sub-topics within a chapter???

[jelani1911]

A company reports the following account balances at year‐end:

Account Balance
Long‐term debt $200,000
Cash 50,000
Net sales 600,000
Fixed assets (net) 320,000
Tax expense 67,500
Inventory 25,000
Common Stock 100,000
Interest expense 20,000
Administrative expense 35,000
Retained earnings 150,000
Accounts payable 65,000
Accounts receivable 120,000
Cost of goods sold 400,000
Depreciation expense 10,000

Additional Information:
The opening balance of common stock was $100,000
The opening balance of retained earnings was $82,500
The company had 10,000 common shares outstanding all year
No dividends were paid during the year

For the year just ended, the company has times interest earned of
3.375 times.
6.75 times.
7.75 times.
9.5 times.

Can some one help explain this question to me!!!

[jjjgolf500]

Times Interest Earned = EBIT/Interest Expense

Interest Expense is given. To find EBIT, subtract COGS and other expenses that aren't Interest or Taxes from Sales. Looks like it comes out to 155000/20000. Could be wrong because I just glanced.

[jelani1911]

@jjjgolf500

Thanks a lot, Wiley sucks at explanations.

I need some assistance with this question as well.

A company produced and sold 100,000 units of a component with a variable cost of $20 per unit. First‐quality components have a selling price of $50. The component’s specifications require its weight to be 20 kg. with a tolerance of +1 kg. Unfortunately, 1,200 of the units produced failed the company’s tolerance specifications. These 1,200 units were reworked at a cost of $12 per unit and sold as factory seconds at $45 each. Had the company had a quality assurance program in place such that all units produced conformed to specifications, the increase in the company’s contribution margin from this component would have been

$14,400
$20,400
$21,600
$39,600

[marine]

I am using Roger's course, but I've just bought NINJA MCQ BEC. It has better WC part

[SONA]

I think the answer will be $20400.

The additional amount he spent on reworking $12 + $5 lost profit. Therefore 17*1200 units would have been his gross profit.

I might be wrong but this is my educated guess.

[marine]

Same happened with me (I am using Roger). I was doing 85 and more at home. In addition I feel questions was much more difficult then I was practicing.I got 68. But I know I did bad on WC(almost nothing). One of my questions was 401K which is not covered in my course. Don't worry! You can still pass! I had the same feeling with FAR but I passed it!

[jelani1911]

A company reports the following account balances at year‐end:

Account Balance
Long‐term debt $200,000
Cash 50,000
Net sales 600,000
Fixed assets (net) 320,000
Tax expense 67,500
Inventory 25,000
Common Stock 100,000
Interest expense 20,000
Administrative expense 35,000
Retained earnings 150,000
Accounts payable 65,000
Accounts receivable 120,000
Cost of goods sold 400,000
Depreciation expense 10,000

Additional Information:
The opening balance of common stock was $100,000
The opening balance of retained earnings was $82,500
The company had 10,000 common shares outstanding all year
No dividends were paid during the year

At the year‐end, the company has a book value per share, to the nearest cent, of
$10.00
$15.00
$21.63
$25.00

[jjjgolf500]

Book Value Per Share = Common Stockholder's Equity/Common Shares Outstanding.

The common shares outstanding are given.

Looks like to find equity you can take Assets – Liabilities = Equity.

Is it 250000/10000 or $25.00?

*Unless it wants the Average C/S Equity instead. In that case it would be the (185200+250000)/2 = 216250. Then 216250/10000 = $21.63

[Anonymous]

I just took BEC yesterday (01/10), and I don't feel too good about it. I know I had to guess on a few MC choice questions, but I really only had any trouble with one of the writing assignments.

AUD-78
BEC- waiting on results
FAR- 02/2017
REG- 04/2017

[Anonymous]

@chasemlewis-sounds like you might have done ok if you only had trouble with one WC? Did you find you had enough time?

[rserrao24]

@chasemlewis I'm in the same boat as you (took the exam on 01/07). I had to guess on more questions than I would have liked, but the WC were pretty easy. Only one of them was related to a topic that I'm not too familiar with, but I was able to finish all three with 2 minutes left.

[Author]

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