[jeff]

Welcome to the Q3 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

[Just3Letters]

Hey guys,

this new look had me completely phased when I first logged on haha

Like the new streamlined look though!

Anyways, my test is tomorrow. I get a free day off work! For the written communication, should I sign off like this…

Best,

John Doe, CPA (or whatever my given role is)

Obviously I would replace John Doe with my real name. The sign-off seems the most obvious but I just don't know what the best way to sign-off is. Thanks!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Patrick Crawford]

test

[csvirk]

@just3

Hope you did well. Keeping all you guys in my prayers.

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

[Ash]

My test is next Monday! I want to type every explicit word I know. I am not studying effectively in my opinion and I am frustrated with myself but I need to press forward since I already have REG and FAR scheduled after this (I learned from this mistake just pay the money and spread out the tests no need to rush).

I feel ready to vomit and wish I could call in sick to work all week and just study. I still have six solid days to dominate this material. I am confident I am going to do my best but I just needed to get this off my chest so I can stop thinking about it and just study.

AUD- 72, 71, TBD (now i am pissed no more messing around)
BEC-8/29/16
REG-10/10/16
FAR-70 retest-11/28/16

[csvirk]

here is the video made by fellow ninja about Variances calculations. Hope this helps.

https://youtu.be/zt2X6OOXBdc

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

[Anonymous]

Good luck on your test on Monday. I moved my schedule back to 9/9. Why is the last day for this extended window not 9/10?

[Anonymous]

What would be the answer if the method used were FIFO?

BEC – Operations Management MCQ

Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs. What is the total value of direct labor costs in ending work-in-process inventory using the weighted-average unit cost inventory valuation method?
A. $183,000
B. $194,000
Correct C. $210,000
D. $216,000
You are correct, the answer is C.
The weighted-average process cost method includes in equivalent units (EUs) all units completed plus work done on ending work-in-process (WIP).
Thus:
Weighted-average EUs = Units completed + Work done on ending WIP
For Kerner Manufacturing:
Direct labor EUs = 400 + 75% (200)
= 400 + 150
= 550

Cost per direct labor EU = Total labor cost / Equivalent units
= ($50,000 + $720,000) / 550
= $770,000 / 550
= $1,400

Ending direct labor WIP = 150 units in ending WIP x $1,400 per EU
= $210,000
Under the FIFO assumption, only the costs incurred this period are allocated between finished goods and ending work-in-process (WIP) because FIFO maintains beginning inventory costs that are completely separate from current-period costs.
• Goods finished this period are costed separately as either started last period or started this period.
• Under FIFO, equivalent units of production (EUP) equals work done in the current period on Beginning WIP, plus the units started and completed in the current period, plus the work done on Ending WIP.
The weighted-average assumption averages all materials and all processing (conversion) costs (both those incurred this period and those in Beginning WIP).
• No distinction is made between goods started in the preceding and the current periods.
• EUP differ from the FIFO calculation by the amount of EUP in Beginning WIP.
EUP under weighted average equals the EUP transferred to finished goods plus the EUP in Ending WIP.

[Anonymous]

FIFO:

EU Formula:
-WC
+UCATO
+WIPE, CP

-50
+400
+150
——
= 500 EU

$720,000 Current Costs
÷ 500
————
=$1440/EU
x 500
————
=$216,000

[LedgerL0ver]

I'm not usually one to say this since I work hard with studying and usually see the benefits from it, but I am about 80% through the Ninja MCQs for BEC and still haven't hit a trending score of even 75%. I initially thought BEC would be easier for me but this section is utterly BRUTAL!

FAR 4/24/16 --85--
AUD 7/5/16 --84--
BEC 8/30/16 --?--
REG

[csvirk]

@ledgerL0ver

definitely agree with you. I am done all the questions but still have trouble retaining information. Good Luck everyone!

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

[RE2PECT]

A company produces widgets with budgeted standard direct materials of 2 pounds per widget at $5 per pound. Standard direct labor was budgeted at 0.5 hour per widget at $15 per hour. The actual usage in the current year was 25,000 pounds and 3,000 hours to produce 10,000 widgets. What was the direct labor usage variance?

A.
$25,000 favorable

B.
$25,000 unfavorable

Correct C.
$30,000 favorable

D.
$30,000 unfavorable

You are correct, the answer is C.
The labor efficiency (usage) variance is the difference between standard cost of actual hours and the standard cost of the budgeted labor hours.

Standard cost (at $15 per hour) of the actual hours of 3,000 hours was $45,000.
Standard cost (at $15 per hour) of the standard hours (0.5 hours × 10,000 widgets) was $15 × 5,000 hours, or $75,000.
Since the actual cost was less than the budgeted cost ($45,000 – $75,000), the labor efficiency (usage) variance was $30,000 favorable.

Did I get this right by mistake or did I just solve it a different way?

The way I did it was:

DLEV = SR x (SH – AH)

$15 x (5000 – 3000) = 30,000 favorable

I got the 5000 from multiplying the actual usage of 10,000 widgets by the standard .5 widgets per hour.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[Texasmom]

Really struggling with BEC and I take it in 2 weeks!! 🙁 My trending score is 65 in Wiley. I gave myself 6 weeks to study for it after i failed REG but I am really struggling with this cost accounting stuff. What is the main thing you guys are focusing on?

FAR - 84
REG - 72, 73
AUD-
BEC - Sept 2016

[iamonloose]

I am taking BEC in two weeks as well. I just finished all the chapter and hw questions. I am struggling with chapter 2 and IT mainly, and I don't understand leverage.

[Anonymous]

@Spartan, your computation is correct. That's how I'd compute this problem using the equation format “PURE”:

DM PV [DM Price Variance] = AQ x $(Actual Price – Std Price)

DM UQV [DM Usage Qty Variance] = Std Price $ x (AQ – SQ)

DL RV [DL Rate Variance] = AH x $(Actual Rate – Std Rate)

DL EV [Efficiency Variance] = Std Rate $ x (AH – SH)

Using this format gives me a quicker picture to see it’s favorable or unfavorable.

[RE2PECT]

@Amor D- Thanks, for the assurance. Sometimes Ninja gets really detailed with the answer explanations and makes me second guess if I'm doing them correctly or just getting lucky. I know there's different steps you can take to come to the same answer, but sometimes I get confused when it's done a different way than the one I did. I notice it a lot when I get the same question on Ninja & Roger because they usually have different explanations.

Does anyone have a good mnemonic or way to calculate GDP using the expenditure and income approach? I usually have to refer to my notes, especially for the expenditure approach. I didn't get a question on it for my first attempt, but have a feeling I may on the next one.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[Author]

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