[jeff]

Welcome to the Q2 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

[MaLoTu]

WA has 2 steps and FIFO has 3 … Every time I do either, I write the steps

WA
1) Units Completed
2) Ending Inventory * % complete

FIFO
1) beg. Inv * % to be completed
2) completed units minus the beg. inv
3) end inv. * % completed

[Bear-Bear]

@MaLoTu – It's in the “Financial Management” portion of Wiley, and they are capital budgeting techniques (ways of evaluating the feasibility/profitability of different proposed capital projects). Yucky stuff.

Hold on…I just finished FAR…you mean I gotta deal with this FIFO #$%# again for BEC???

[Anonymous]

Hi MaLoTu. The formula is clear to me. I keep getting the wrong answers however. I'm missing something conceptually.

Black, Inc., employs a weighted-average method in its process costing system. Black’s work-in-process inventory on June 30 consists of 40,000 units. These units are 100% complete with respect to materials and 60% complete with respect to conversion costs. The equivalent unit costs are $5.00 for materials and $7.00 for conversion costs. What is the total cost of the June 30 work-in-process inventory?

A. $368,000
B. $200,000
C. $288,000
D. $480,000

Right answer is: A

[MaLoTu]

@CPA – you have to do both the EU and then add them together. Materials has its own EU and conversion costs have theirs.

In the particular question:

Materials – 40000*5 = 200,000
Conversion (40000*.6)*7 = 168,000

200k + 168k = 368k

[MaLoTu]

@Bear – You have to do EU with FIFO and WA, but it isn't hard once you conceptualize it. The financial formulas start clicking once you use them. Just keep writing them and explaining to yourself what they mean.

[csvirk]

The following information pertains to Quest Co.’s Gold Division:

Sales $311,000
Variable cost 250,000
Traceable fixed costs 50,000
Average invested capital 40,000
Imputed interest rate 10%

Quest’s return on investment was:

A.
10.00%.

B.
13.33%.

Correct C.
27.50%.

D.
30.00%.

Solution:

Division net income equals $311,000 sales less variable costs of $250,000 and traceable fixed costs of $50,000, or $11,000. Return on investment is net income ($11,000) divided by investment ($40,000), or 27.5%.

why was Imputed interest rate not used in calculation?

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[JSThompson]

Need some help with how to attach the Ninja study material to get ready for the BEC exam.

I was looking at the Ninja study planner and wanted to know do I read each section, rewrite my notes then do the MCQ for that section or is there a better way to get through the material?

Any help will be greatly appreciated.

Thanks in advance.

2016 CPA Candidate

[monikernc]

JST, i suggest you read a section, do the mcq's for that section, and read everything that comes up with response and take notes from the mcq's. As you work through the mcq's write the question number down with your work or notes. To do mcq's by section, go to custom, select questions, then new questions. Then, missed questions. Progress will be slow your first pass. Stick with it and remember you are not being tested, you are learning. Scores will pick up.

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]

csvirk,

You wouldn't use the imputed interest in this calculation because Return on Investment is calculated as Return/Investment.

You'd take the sales of $311,000 subtract the variable and fixed cost of 250,000+50,000 which equals $11,000. Then
you'd divide the 11,000 by the invested capital of 40,000. This equals .275 which is 27.5%.

I'm tired of operating in fear and mediocrity. It's time to try. It's time to do. It's time to go.

[Anonymous]

I'm 13 days away from taking my exam and I do NOT feel like I have it all down. Is this normal? I'm feeling like I should reschedule the exam again. I've been studying my behind off, but I still feel like there's just too much I don't know like the back of my hand.

I'm tired of operating in fear and mediocrity. It's time to try. It's time to do. It's time to go.

[JSThompson]

Hi monikernc,
Thanks for the info about how to get going on this material.
I want to follow the Ninja method of studying for these exams as closely as possible.
Thanks again for the help.

2016 CPA Candidate

[Crunchtime]

Hey guys just needing some advice, I have my test in two weeks this is my fourth try. I am using Ninja MCQ's right now and my trending keeps going up and down. I started out liked at 70% then went up to 80 back down to 75 and up to 81 and now I am back down to 73. Do you guys think it is just new questions being introduced or do you guys have theories? I don't know how to make it out. Any responses would be helpful. thank.

AUD-77
BEC-70,73,68,74 SH##!!!!!, 80
REG-73,76
FAR -74,82

Ethics here I come!!

[Anonymous]

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 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 & 151. For August, manufacturing overhead was:

A. overapplied by $4,000
B. underapplied by $7,000
C. underapplied by $2,000
D. underapplied by $1,000

Before I provide the answer, I want you all to tell me what you think it is and how you worked it. I want to see where I'm making my mistake.

I'm tired of operating in fear and mediocrity. It's time to try. It's time to do. It's time to go.

[Andrew T]

I'm scheduled to take AUD 5/9 but I'm thinking about scheduling BEC for this window as well because of the 10 extra days. Would it be doable to study and take BEC within 30 days while working 40 hours a week?

FAR (2/29/16) - 84
AUD (5/9/16) - 68; (7/16/16) - 90
BEC (6/10/16) - 80
REG (9/8/16)

[Pony Boy]

@KGREEN:

It states that applied MOH is calculated at 200% (or 2x) DL costs ($). The DL for the 3 jobs adds up to $9,000, so the MOH that is applied is $18,000 (2x DL). Comparing this to the actual MOH costs for the period ($20,000), the MOH was underapplied by $2,000 (MOH applied < Actual MOH costs).

REG (02/2016)- PASS
BEC (04/2016)- PASS
FAR (06/2016)- PASS
AUD (08/2016)-

"Stay Gold, PonyBoy, Stay Gold"

[Author]

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