BEC Study Group Q2 2016 - Page 66

  • This topic has 1,014 replies, 103 voices, and was last updated 9 years ago by Anonymous.
Viewing 15 replies - 976 through 990 (of 1,014 total)
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  • #767004
    bilal1990
    Participant

    no problem guys!! if anyone has any questions or want to share. Please feel free to do so!!

    We got this guys!!!!! we will become CPA's!!!!!!!!!!!!!!!!!!!!!!!!!!!

    #767005
    bilal1990
    Participant

    no problem guys!! if anyone has any questions or want to share. Please feel free to do so!!

    We got this guys!!!!! we will become CPA's!!!!!!!!!!!!!!!!!!!!!!!!!!!

    #767006
    bilal1990
    Participant

    no problem guys!! if anyone has any questions or want to share. Please feel free to do so!!

    We got this guys!!!!! we will become CPA's!!!!!!!!!!!!!!!!!!!!!!!!!!!

    #767007
    Anonymous
    Inactive

    I've attached below Question/Solution No. CPA-04798 re: Variable Costing Approach:

    The income statement is presented under the variable costing approach.
    Can someone show me how to present the I/S using the absorption costing approach?
    I appreciate your help!

    #767008
    Anonymous
    Inactive

    I found this online:
    https://freeportct.com/pctools/Becker%20CPA%20Review/PassMaster/Business%205%20PassMaster%20Questions.pdf

    I thought I would share here with you this set of BEC (350) MCQs from many years ago.

    #767009
    Kmay89
    Participant

    So after seeing mention of XBRL questions, I went and re-read over that section and realized I didn't really understand what it was about so I made my boyfriend who writes software explain to me about HTML, XML, and XBRL and thought I would share his explanations in case anyone else is IT illiterate like me.

    My main concern was what is the difference between HTML and XML and what does it have to do with XBRL. XML is a more advanced internet data communication tool because of it's use of tags (aka labels). In HTML, the code is static and would look something like this for an e-mail: (the code is not totally accurate, but paints a better picture this way)

    <title>To X From Y <title/>
    <heading> Subject: Invitation <heading/>
    <paragraph> Message: Come join… <paragraph/>

    This code is static as in this file couldn't be used to receive another message without going in and changing the actual code. Because of XML's tags, new data could be used to recreate a file with different data. XML file might look like this:

    <to> X <to/>
    <from> y <from/>
    <subject> Invitation <subject>
    <message> Come join… <message/>

    This relates to XBRL in that XBRL is based on XML, but used specifically for business information. The SEC requires a company to send financial statements in XBRL format which probably looks something like this:

    <cash> $356,091 <cash/>
    <accounts receivable> $560,123 <accounts receivable/>

    This allows the SEC to use one standard file to capture, format, and recreate financial data. Also, I'm not sure if this would show up on the test at all, but my boyfriend says that XML is actually being overtaken by a new more advanced language, Java Script Object Notation (JSON).

    BEC- 93
    FAR- 9/6/2016
    AUD- 10/7/2016
    REG- 11/21/2016

    Wiley CPAexcel Self Study & Ninja supplements

    #767010
    Anonymous
    Inactive

    Wow, KMay, that's very impressive!

    But I still don't understand that, haha.

    #767011
    bilal1990
    Participant

    @Amor D

    I am not sure if this is going to answer what you are asking but this is what i understand from the problem and concept.

    Under Variable Costing you have Contribution Margin rather than Gross Margin which is under Absorption Approach.

    Sales or Revenue minus Variable Cost (which includes OH and S&G) = Contribution Margin – Fixed Cost (which includes OH and S&G)

    Also, don't forget you DM & DL which are your prime cost

    Sale price = $80 – DM ($21) – DL($10) – OH & S&G($3 + $6 = $9) = $40 which is your contribution margin per unit.

    now you take the contribution margin and times is by number of units sold to get the income you will get and in this case it is 4500 x 40 = $180,000.

    and if you subtract you Fixed OH($76,000) and S&G ($58,000) which equals $134,000

    $180,000 – $134,000 = $46,000 Net income.

    Now since we have the understanding for variable costing, we can move on to absorption

    Under Absorption Method: always remember if production is greater than sale then income will always be higher.

    Production = 5,000 Sold = 4,500 Ending Inventory = 500. This means we are looking for a higher income than variable.

    Sale or Revenue – COGS (DM+DL+OH (Fixed & Variable) = Gross Margin

    Sale 80(4,500) = 360,000
    DM -21 (4,500) = (94,500)
    DL -10 (4,500) = (45,000) This is all considered Product Cost
    VOH -3 (4,500) = (13,500)
    FOH (68,400) Calculation = 76,000/5000 = 15.20 = 15.20 x 4500 = 68,400
    Gross Margin = 138,600

    Var S&G -6(4500)= (27,000)
    Fix S&G = (52,200) Calculation = 58,000/5000 = 11.60 = 11.60 x 4500 = 52,200

    Net Income = $59,400

    Net Income seems higher than it is under variable costing.

    But you can always check your work and always remember like i said before under Absorption net income is higher if production is greater than sales.

    Check & Balance

    Total fixed cost = 76k = 58k = 134k
    Divide by number of units = 5k
    produced

    Calculation = $134,000 / 5000 = $26.80 per unit

    times by the ending inventory which in this case = 500

    500 units x $26.80 = $13,400

    now if you go back to the solution you put with the question. it says under variable the net income is 46,000.
    so if you add 13,400 to 46,000 it gives you 59,400. which means under absorption income is higher by $13,400.

    I believe my finger and brain are ready to fall off my body but i hope its clear and you understand it . Sorry if it got a little messy.

    If you have any question, i'd be happy to help.

    Good Luck!!

    #767012
    Anonymous
    Inactive

    Oh Bilal, THANK YOU very much!

    I appreciate your time to break it down for me.

    Although my head is still spinning with this calculation. I find this so intense!

    FOH (68,400) Calculation = 76,000/5000 = 15.20 = 15.20 x 4500 = 68,400

    But hopefully, I will finally get this straight in time.

    #767013
    Crunchtime
    Participant

    @aatoural/whomever, should I move my test up from the 11th to sometime next week?

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

    Ethics here I come!!

    #767014
    perezc3910
    Participant

    My test is tomorrow and i'm SO not confident but I'm just going to take it and hope for the best.

    BEC-July 2016
    REG-August 2016
    FAR-October 2016
    AUD-Nov/Dec 2016

    #767015
    Anonymous
    Inactive

    @perezc3910 Good luck tomorrow & I'm sure you will be just fine! May I ask why you're SO not confident? Do you have any advice to offer/strategies you wish you would've changed in my position? (my exam is scheduled for 7/11).

    My plan is:
    -Hammer Becker MC
    -Re-work weak areas
    -Take a practice exam
    -Purchase NINJA MC
    -Hammer NINJA MC
    -Re-work weak areas
    -Review notes daily
    -Listen to audio on my commute to and from work

    Thanks!

    #767016
    perezc3910
    Participant

    Thank you. The formulas hard to memorize and I fear that there will be a lot of computational questions on the test. I gave myself three weeks to do as many MCQ as possible. You should definitely buy NINJA mcq and start ASAP

    BEC-July 2016
    REG-August 2016
    FAR-October 2016
    AUD-Nov/Dec 2016

    #767017
    mckan514w
    Participant

    GOOD LUCK to everyone testing tomorrow / over the weekend!!!
    @Kaymay- that write up was awesome thank your boyfriend for me!!!

    and they ask me why I drink...

    FAR- 61-next time I'll ask for lube instead of a calculator
    REG-75- Never been so happy to see such a low grade
    BEC- 8/11
    AUD- 9/2

    #767018
    aatoural
    Participant

    @kaymay awesome explanation, but I think our questions are more based on decision making, so I don't know how this comes into place. i read more into XBRL to just kinda see if it sticks to me.

    Perez good luck to you tomorrow! I am going in at 8:45 in the morning. Let you guys know how it goes. hopefully not so bad. Also perez try to re write formulas todays that totally worked for me.

    BEC - PASSED
    AUD - 8/29/16
    FAR - TBS
    REG - TBS

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