[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

[cpain2015]

Anyone taken BEC who feels like they failed miserably? I hope by some slim chance I pulled it out…I don't know why I am having so much difficulty with this section

FAR - 73, 75 PASSED
AUD - 74, 96
BEC - 79
REG - 89! Done. I'm a CPA!!

[steph2014CPA]

Using becker

Selected information concerning the operations of a company for the year ended December 31 is as follows:

Units produced

20,000

Units sold

18,000

Direct materials used

$80,000

Direct labor incurred

$40,000

Fixed factory overhead

$50,000

Variable factory overhead

$24,000

Fixed selling and administrative expenses

$60,000

Variable selling and administrative expenses

$9,000

Work-in-process inventories at the beginning and end of the year were zero. What was the company's finished goods inventory cost at December 31 under the variable (direct) costing method?

a.$19,400

b.$14,400

c.$17,000

d.$23,900

I specifically found the lecture where Becker said variable SG&A are included in variable costs and therefore the computation of Contribution Margin… Someone explain please! I feel like the book is wrong.

FAR: 80
AUD: 83
BEC: 79
REG: 56, 74, 74, January 6th

[mmp7183]

@ steph – the variable SG&A is yes, included in the Contribution Margin computation (which is also used in break even analysis, etc). however, since the question is about Inventory Costing, SG&A is not to be included since it is period cost, not a product cost. Hope this helps.

Oh-Hey-Yoh Candidate

FAR - 89 Dec 2013 (CPAExcel)
AUD - 89 Feb 2014 (CPAExcel)
BEC - 83 Aug 2014 (Becker)
REG - 85 Oct 2014 (Becker)

CMA (Aug 2011), CFSA (Dec 2008), Philippine CPA (Nov 2004)

[Anonymous]

Is the answer not B?

[jstay]

im getting B too

[jstay]

i really hope its B

[Anonymous]

Remember the key difference here is the treatment of FMOH….SGA is the same.

[jstay]

Direct (non GAAP) vs Absorption (GAAP):

Direct:

Revenue

less: DM, DL, Variable O/H, variable SG&A

=CM

less: Fixed OH & Fixed SG&A

= net income

Absorption:

Revenue

less: DM, DL, Variable AND Fixed OH

=CM

less: Fixed & Variable SG&A

= net income

No change in inventory: Direct = Absorption

Production > Sales= Absorption higher profit

Sales> Production= Direct is higher profit

[mmp7183]

It's B. $7.2 per unit (variable costing) x 2,000 ending inventory.

Oh-Hey-Yoh Candidate

FAR - 89 Dec 2013 (CPAExcel)
AUD - 89 Feb 2014 (CPAExcel)
BEC - 83 Aug 2014 (Becker)
REG - 85 Oct 2014 (Becker)

CMA (Aug 2011), CFSA (Dec 2008), Philippine CPA (Nov 2004)

[Anonymous]

Some books split out the Variable/Direct I/S a little further……

Sales

-Variable Manufacturing Costs

=Manufacturing Contribution Margin

-Variable SGA

=Contribution Margin

jstay….one thing to keep in mind is that CM is a term used strictly for Variable/Direct. Absorption uses Sales-COGS=Gross Profit/Gross Margin.

[jstay]

ahhh i see, thank you!

yeah i had that on my index cards (just checked) but i was trying to do it off the top of my head

[ThumbsUp]

Has anyone seen the email that they are updating the Becker material? I'm on lecture 4 right now and take it November 24th. Am I okay or do I need to rewatch the lectures they update?

AUD- 22, Just missed it...maybe next time!
REG- 14, so close!!!

[jeff]

This question has been updated. Get the new question here:

https://www.another71.com/introducing-ninja-mcq-adaptive-learning-technology/

[Anonymous]

Keep them coming!

[jstay]

current ninja trending = 65.17

average score= 66

[Author]

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