[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for BEC.

Economic Cycles (All Across the Land)https://www.another71.com/economic-cycles-rap/

Posted by Another71 on Thursday, November 6, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

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

[iddyrashy]

workhard@ we can do this, same strategy am studying B1 between today and Friday most of material are related to other section so nothing real heavy metal, at least for now lol.

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[workhard]

@iddyrashy or anyone who is using Becker

How did you do Becker questions for BEC? I am still in chapter 1 and feel like getting lost….

I basically study from Becker homework …. I hope I am doing it in the right way to study for BEC

…..

REG - 69 8/31/2015
FAR - 11/23/2015
FAR - TBD
AUD - TBD

Work hard, enjoy life later

[iddyrashy]

@ workhard I am half of B1, it seems like the stuff are too detail, me too I got real confused last night, the material seems to be easy to read, but questions are somehow crazy. I am hoping to finish B1 tomorrow.

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[workhard]

Can anyone please help me out this question?

Kimbeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May:

Units

Beginning work-in-process inventory, May 1 16,000

Started in production during May 100,000

Completed production during May 92,000

Ending work-in-process inventory, May 31 24,000

The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs. The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs.

Costs pertaining to the month of May are as follows:

Beginning inventory costs are: materials, $54,560; direct labor, $20,320; and factory overhead, $15,240.

Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.

Using the weighted-average method, the equivalent unit cost of materials for May is:

The answer is $ 4.6, but, I don't understand how did Becker get 104,000 (Please refer to Becker answer as below)

Choice “c” is correct. $4.60 equivalent unit cost of materials using the weighted-average method ($54,560 beginning inventory + $468,000 additions = $522,560 ÷ 113,600 total available equivalent units).

Materials

Actual % Complete Equivalent Units Total Cost Unit Cost

Units

Beginning Inventory 16,000 60% 9,600 $ 54,560

Add: Started 100,000 SQZ 104,000 468,000 $ 4.5 FIFO

Total Available 116,000 113,600 522,560 $ 4.6 wed-avg

Less: Completed < 92,000> 100% < 92,000>

Ending Inventory 24,000 90% 21,600 $ 97,200 $4.5 FIFO

REG - 69 8/31/2015
FAR - 11/23/2015
FAR - TBD
AUD - TBD

Work hard, enjoy life later

[Kikidelivery]

@workhard, I am using Becker but I used my way and I got the right answer. The way Becker does is confusing.

The question asks “Using the weighted-average method, the equivalent unit cost of materials for May””.

The different between WACC and FIFO is the beginning inventory. WACC includes 100% beginning inventory, so;

Beg; 16,000 100% complete

[Kikidelivery]

Shot! accidentally hit enter!

Beg: 16,000 100%complete 16,000

Started/Finished 76,000 (92,000-16,000) 100%complete 76,000

End; 24,000 90% complete 21,600

total equivalent unit 113,600

Material cost $522,560 (54,560+468,000)

Material cost per unit 522,560/113,600 = $4.6 per unit

[jsch8912]

@Crunchtime Yes I did the Becker MCQ twice. So far, I only did them once and I am taking it very slowly. It has been two weeks and I am not even done the whole book. Fudge. I still have 3 weeks, I need to do the Becker MCQ once more then probably just using NINJA for review.

[Anonymous]

Just got to vent a little. Trying to stay focused on BEC, not on the countdown to the score release. I am working through the financial management and alternating with the econ theories because it has been forever since I looked over these theories. I do remember a lot about the margin from econ, but had to refresh on the GDP elements. Basically, a lot of reading, re-reading, researching, and writing (and re-writing) notes. I am being careful to not try to take the information at a prime facie level by asking myself if I really get the gist of the concepts because I better be prepared to throw down a clear and concise explanation in the SIMS. I am fairly certain the SIMS will include at least one corny scenario where a “client” wants to know why it is so important to be over the BEP. I don't think clients in the real world care about “BEP” other than that their operating margins are in the black. #EndOfRant

[workhard]

@Kikidelivery

Thank you for your help, your explanation is really better than Becker

Now it all make sense to me now 🙂

Happy study day

cheers

REG - 69 8/31/2015
FAR - 11/23/2015
FAR - TBD
AUD - TBD

Work hard, enjoy life later

[Iggy1985]

*probably a dumb question, but can someone explain why you don't use the annuity factor here? is it because the amount is different every year? Also why multiply by the tax rate rather than 1 minus the tax rate? I think my brain is no longer functioning 🙁

The following selected data pertain to a 4-year project being considered by Metro Industries:

A depreciable asset that costs $1,200,000 will be acquired on January 1, 20X1. The asset, which is expected to have a $200,000 salvage value at the end of four years, qualifies as 3-year property under the modified accelerated cost recovery system (MACRS).

The new asset will replace an existing asset that has a tax basis of $150,000 and can be sold January 1, 20X1, for $180,000.

The project is expected to provide added annual sales of 30,000 units at $20 each. Additional cash operating costs are variable, $12 per unit; fixed, $90,000 per year.

A $50,000 working capital investment that is fully recoverable at the end of the fourth year is required.

Metro is subject to a 40% income tax rate and rounds all computations to the nearest dollar. Assume that any gain or loss affects the taxes paid at the end of the year in which it occurred. The company uses the net present value method to analyze investments and will employ the following factors and rates.

Metro is subject to a 40% income tax rate and rounds all computations to the nearest dollar. Assume that any gain or loss affects the taxes paid at the end of the year in which it occurred. The company uses the net present value method to analyze investments and will employ the following factors and rates.

Present Value Present Value of MACRS

Period of $1 at 12% $1 Annuity at 12% Rate

---

---

---

---

1 0.8929 0.8929 .33

2 0.7972 1.6901 .45

3 0.7118 2.4018 .15

4 0.6355 3.0373 .07

The discounted cash flow for 20X4 MACRS depreciation on the new asset is:

= $1,200,000 x .07 x .40 x .6355

= $21,353

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[Anonymous]

@Iggy1985 : You can't use the annuity factor because the MACRS depreciation amount is different each year unlike the straight line depreciation. You can see that in the table because it's depreciating at 7% in Year 4 instead of 33% in year 1.

You would multiply by the tax rate because Depreciation x Tax Rate = Tax savings (implied cash inflow). The net present value ignores depreciation (it's actually added back to your net income in order to get your pretax annual cash flow); however, NPV considers the tax savings due to the depreciation (Depreciation x Tax Rate) and treat it as a cash inflow.

In summary, the way I remember the annual cash inflow with the tax consequences is:

1. annual operating income x (1-Tax Rate)

2. depreciation x Tax Rate

Add these cash two inflows together.

[Anonymous]

I was wondering if someone could guide in the right direction. How is everyone studying for the written portion of the exam? I think I'm going to have a though time with this part.

[pracap]

Hi everyone,

This is a great forum for a CPA candidate who can share his/her exam experience and doubts etc….

I love this forum. Great work, Jeff….

I would like to inform you all that so far i have cleared FAR in second attempt and struggling to pass BEC.

My Past scores are 73, 74, 71 and yesterday i saw my score at 66.

I felt i did really well this time and got my lowest score ever. Am using Becker and wiley test software.

My question is, has anybody experienced same like me?

People tell BEC is the easiest, but for me it has become a nightmare.

Kindly advise whether i should leave BEC aside and concentrate on AUD?

what additional materials i need to see in order for me to pass BEC?

[Anonymous]

For the WC portion of the exam, don't spend too much excess time studying for it. Know what makes a good business memo.

I don't know about other review programs but Becker has an hour long lecture on the WC. It's worth watching once to get an idea of what they're looking for but don't spend much more time than that.

The main thing to know about the WC is that you need to write a good memo. It needs to be structured properly, contain good grammar and no misspellings. Nobody but the AICPA knows for sure, but the consensus is that writing a proper memo is more important than answering the question correctly. Sure, you'll lose a few points if you are way off but I don't think you'll lose as many as you are afraid of.

Finally, it's impossible to study and prepar for the questions they ask because they have a broad range of topics in the database. You might get a BEC topic, a FAR topic, an AUD topic or something else entirely. For mine, I had to make up 100% BS on one of my Memos and I knew enough about the other two to write good answers. But again, content is less important than structure.

[Shante3566]

I took BEC on April 22nd for the second time. I am not feeling to confident about my test because it was heavy COSO focused. However, I took it the first time in Dec 2014 and scored only a 67 and I was confident that I did good that time. I am patiently waiting for my score to be released, Hopefully, I passed if not I think I am giving BEC a rest for awhile and focus on either FAR or AUD, any suggestions?

I am using Yeager and Ninja notes, mcq, and audio

[Author]

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