[jeff]

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

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

[A1lessio]

I notice on the Becker Solutions they are very direct and to the point. No hello, or Mr. Doe. The first sentence is right to the point.

AUD (08/02/2016)

[mperez102204]

A single-product company prepares income statements using both absorption and variable costing methods. Manufacturing overhead cost applied per unit produced in Year 2 was the same as in Year 1.
The Year 2 variable costing statement reported a profit, whereas the Year 2 absorption costing statement reported a loss.
The difference in reported income could be explained by the units produced in Year 2 being

A. Less than the units sold in Year 2.
B. Less than the activity level used for allocating overhead to the product.
C. In excess of the activity level used for allocating overhead to the product.
D. In excess of the units sold in Year 2.

I am really not understanding this question – it has me stumped. The answer is A. I understand that the difference between the methods are the fixed costs associated with the units.. I just do not see the thought process to selecting A as the answer.

HELP!

[CPWAT]

@mperez102204 , Absorption method deferred the FC until units are sold. So let say in Year 1 they produce 1000 units and sold 800 and 200 put into year 2, so during year 2 they produce the same 1000 units but sold 1100. The COGS for AC will be higher because the 100 units from Y1 is expensed in Y2. However, for VC method, they are considered period cost FC, so they are expensed right the way in Y1 and not carry over to Y2.

[Anonymous]

mperez102204, just remember this, under VC fixed cost are expensed right the way for AC it's carried over until products are sold. Thus, if you made 1000 in Y1 and sold 800. Y2 made 1000 but sold 1100. The comparison is as below.

VC Y1 fixed cost =period=expensed right the way
AC Y1 fixed cost 800 recognized but 200 carried over to Y2, so Y2 sold 1100 units and produced 1000. Thus the answer A.

[mperez102204]

This is awesome. Thanks so much for the explanation!! It helped a lot

[Joe]

I just started working on my BEC and have purchased Rogers because I really like his learning style but noticed that his questions are not as hard as Becker's (which is required by my school courses). I felt really good with Rogers but the multiple Choice Questions from Becker's are brutal and they are a confidence killer! I'm feeling frustrated going through Becker's MCQ and getting a 65% correct, I understand from many members of the community that they learned by doing the MCQ, getting them wrong, understanding what they did wrong, and trying again until they got the answer correctly…. I'm used to taking a MCQ and looking at the score as a reflection of what I know or should have learned during the lecture or on their material, even if I learned pretty quick that allot of what is on the MCQ in Becker is not on their material or is worded completely differently. I guess the big takeaway for others in the community is that you have to learn different for the CPA exam, you have to do MCQ in order to master the materials, knowing that Becker's questions are very hard and potentially harder than the exam itself.

[AFSD]

Hi-

I cannot get the cost processing concept in my head, or how to calculate equivalent units. I'm about to give up on these subjects.

I'm running 95% on Wiley test bank not answering the cost processing, job costing or equivalent unit questions.

Should I keep doing what I'm doing, and focus on all other areas and forget about the ones I mentioned above? I have the test on 03/07/2017.

Thanks

[Theodore]

@joeserrone I love Becker. You are correct some of the questions are worded differently than the material but I think it is a way to incorporate critical thinking into these exams. We need to know the information forwards and backwards. They also question you on material that they do not cover but that's great too because the material can only cover so much…

@AFSD FIFO in units
Beg Bal. x remaining % to complete the process
+ units started and completed
– Beg Bal (all units transferred in)
+ % of ending inverntory to complete
= equivalent units

Weighted Average
Units started and completed
+ % of ending inventory to complete

The difference between the two is units transferred in

cost – FIFO
only current costs

Cost – WA
beginning and current costs

When you have a problem that mentions meterial and conversion cost. do the whole process one by one. first do materials then conversion cost or vice versa. if they ask for total costs then you do the same and at the end put add them together.

I am full of prework out right now so I am not sure if I am making sense.lol

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[Theodore]

To determine equivalent cost per unit you divided for FIFO current cost by equivalent units and for WA beg. and current cost by equivalent units.

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[mperez102204]

Hey all. I need to make a choice and I would like you all the help me. I am all the way through the material, but the last part, which is performance. I have only 5 days until exam. Should I just start banging out questions in Ninja?

[Theodore]

@mperez102204 It wouldn't hurt to go over it. What if they throw in a question or two that could be the deal breaker between a 74 and 75?

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[mperez102204]

This is VERY true! I think it is about 2.5 hours of work. So, I guess you are right. What would it hurt?

Thanks.

[mtaylo24]

Just stopping by now that I have sat (AND SLEPT!). The conceptual questions were worded kind of crazy, questions I didn't see on either Gleim or Ninja, so you definitely will have to use your best judgment. It actually kind of reminded me of my struggle Audit days. The calcs all seemed straight forward. My WCs weren't on tough topics, but I was tired at that point, and also kept getting distracted by the prometric people checking in on me LOL. I finished all three, but ran out of time during my proof-reading process. I winded up doing 570 questions in Ninja for my cram session last night leading all the way up to the exam. I didn't sleep at all. Anyways, I have FAR on Friday, good luck to everyone sitting this week. I hope none of us will have to see the new format!

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Theodore]

So how do we measure our practice exam as far as percentage using Becker? I got 100% on the WC, but they don't really grade you on this. and I got about 77% on MCQs

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[cottonkandi]

@Rosy0407 From other forums I think you can expect to score 5-10 points above your Becker score.

[Author]

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