[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for BEC.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

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

[Theodore]

Hi all. I've been trying to focus for the past two months, but have not been successful. It sucks. I dislike all the topics that are coevered in BEC

Cost accounting
Budgeting – ok I like this one
Information Systems
Economics and
all of chapter 6

-.- Exam is in 3 weeks and i have not started the review process yet. Motivation is out the door (biggest factor) I should be motivated being that it is the last exam on the list. SMH. just venting :/

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[jeff]

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

[uhaksen]

Answer is A

[Brandi]

Definitely B.

[Anonymous]

I think this part that is tricky in this question is it only gives you the units “started” and not the amount completed and transferred out. Which you'd have to solve for (beg inv) 10,000 + (units started) 50,000 – (completed and transferred) X = 4,000 (ending inv)

X= 10,000+50,000-4,000

X=56,000

10,000 x (1-.6) = 4,000

56,000-10,000= 46,000

4,000 x .2= 800

Sum of those = 50,800

Does that help @rlsrapp

[Anonymous]

Hey guys I hope you can help me grasp this one.. This question is pretty easy but I don't understand why every time I encounter it I couldn't get the right answer. It seems like I'm thinking the opposite scenario. Can someone simplify it for me?.. pretty please. thank you in advance.

A country’s currency conversion value has recently changed from 1.5 to the U.S. dollar to 1.7 to the U.S. dollar. Which of the following statements about the country is correct?

A.
Its exports are less expensive for the United States.

B.
Its currency has appreciated.

C.
Its imports of U.S. goods are more affordable.

D.
Its purchases of the U.S. dollar will cost less.

[ilovepho]

Hello guys,

Just created this account. My 18 month period will start soon. And BEC will be my first test in mid Jan. I will be using Becker and go to live course in December.

[uhaksen]

To cherianazia -> I think the answer is A
B – its currency definitely depreciated since the exchange rate went up from 1.5 to 1.7
C – because of the higher exchange rate, imported goods from U.S will be more expensive – they will have to pay more to buy U.S dollar in order to buy US goods
D – definitely it will cost more now with 1.7/$ than when it was 1.5/$

Correct me if my analyses are wrong..
thanx

[rlsrapp]

@elad315
Thank you @elad315 for help on the FIFO EU question. Your answer did help!

[Anonymous]

No problem. I did the same thing on my first stab at it.

[sonja90]

McLean, Inc., is considering the purchase of a new machine that will cost $150,000. The machine has an estimated useful life of three years. Assume for simplicity that the equipment will be fully depreciated 30, 40, and 30% in each of the three years, respectively. The new machine will have a $10,000 resale value at the end of its estimated useful life. The machine is expected to save the company $85,000 per year in operating expenses. McLean uses a 40% estimated income tax rate and a 16% hurdle rate to evaluate capital projects.

Discount rates for a 16% rate are as follows.

Present Value of an
Present Value of $1 Ordinary Annuity of $1
——————- ———————-
Year 1 0.8621 0.8621
Year 2 0.7432 1.6052
Year 3 0.6407 2.2459
What is the net present value of this project?

A.
$15,842

B.
$13,278

C.
$9,432

D.
$(35,454)

[hhung1485]

@sonja90

Believe answer is B 13,278.

85K less your tax = 51k inflow every year

Dep yr 1 – 45k * tax 40% = tax shields per year = 18k
Dep yr 2 – 60k
Dep yr 3 – 45k

10k inflow in year 3 less your tax = 6K

yr 1 – 51K + 18K = 69K = 59,484.90
yr 2 – 51k + 24K = 75K = 55,740.00
yr 3 – 51k + 18K + 6K = 75K = 48,052.50 = 163,277.40

If you multiply by the pv figures in the less column in the chart should get you to answer b.

FAR - 93
REG - TBD
BEC -
AUD -

[hhung1485]

How is everyone else studying for chapter 4? Information technology.

Do you just keep hitting mcq until something sticks?
A guideline for major topics in IT?

Also chapter 2 with the variances.

DM usage, efficieny variance
DL usage efficiency variance.
Variable & fixed oh variance.

I seem to be at a point where i memorized the DM & DL variance formulas but for some reason when do the becker MCQ. I can't seem grasp the problem. Always taking at least 5 minutes or having to result looking at answers.

FAR - 93
REG - TBD
BEC -
AUD -

[JessieP]

BEC tomorrow afternoon, definitely stressing how to spend my final hours. These tests alwas make me so anxious!!! Then the 20 day wait…

FAR:63,76!! 11/28/15
BEC:
AUD:
REG:75 🙂 6/6/16

[sonja90]

Gartshore, Inc., is a mail-order book company. The company recently changed its credit policy in an attempt to increase sales. Gartshore's variable cost ratio for obtaining credit is 70% and its required rate of return is 12%. The company projects that annual sales will increase from the current level of $360,000 to $432,000, but the average collection period on receivables will go from 30 to 40 days. Ignoring any tax implications, what is the cost of carrying additional investment in accounts receivable, using a 360-day year?

A.
$168

B.
$1,512

C.
$2,000

D.
$2,160

[Author]

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