[Anonymous]

So I’m here in Seattle on a sunny 80 degree day….in the library. I’m going over some of the Cost Accounting stuff which should be relatively straight forward. I want to practice some of the equivalent units questions but I’m running into these monstrous questions. As much as I love Becker for over preparing users for the actual exam, I think they get carried away in the difficulty of the actual questions. Sometimes they are so complex that the concepts become convoluted.

I would love it if Becker would throw me out some softballs for me to crush concerning FIFO/Weighted Avg equivalent units. Instead, I get this (below: I did not format this thing to look pretty). My point is, I need to practice the basics because, in all likelihood, I would get a medium difficulty question on average. Becker seems to get straight to the most difficult questions because, as Peter Olinto says, “If you can do this then you’re in great shape.” Well, I would like to get this but because you have layered about 4 or 5 different problems on top of each other, I can’t even manage to learn from the problems. I can’t spend an hour on every question trying to untangle it; I simply don’t have that much time!!

Again, I like Becker, but does anybody know where I could find some questions that might be more reasonable. Becker even states that “this question is overly complex and has been released because it won’t be on the exam.”

Question CPA-03642

Units Beginning work-in-process inventory, May 116,000 Started in production during May100,000 Completed production during May92,000 Ending work-in-process inventory, May 3124,000

a.$153,168 b.$154,800 c.$155,328 d.$156,960

Explanation

Registered to: Blake Smith

Kimbeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May:

The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs. The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs. Costs pertaining to the month of May are as follows: •Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240. •Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160. Using the FIFO method, the total cost of units in the ending work-in-process inventory at May 31 is:

Choice “a” is correct. $153,168 total cost of units in ending work-in-process inventory using the FIFO method. Ending Work-In-Process Inventory – FIFO Actual%EquivUnitTotal Units x Compl = Units x Cost =Cost Materials24,00090%21,6004.50$97,200 Conversion Costs24,00040%9,6005.83$55,968 Ending Inventory24,000 $153,168 Note that the unit costs for materials ($4.50) and conversion costs ($5.83) are calculated below in Notes A and B.

Note A: Cost of materials used $468,000 Equivalent units÷ 104,000 [Note 1] Equivalent unit cost of materials$4.50

Note 1: Under the FIFO method, the equivalent units of production is comprised of three parts: the completion of units on hand at the beginning of the period, the units started and completed during the period, and the units partially completed at the end of the period. Applying these principles to the given fact pattern, the total equivalent units of production for materials is determined as follows: Equivalent units for the first quarter: Work in process, beginning (16,000 units  40% to complete)6,400

Units started and completed: Units completed and transferred out92,000 Units in beginning inventory(16,000)76,000

Work in process, ending (24,000 units  90% complete)21,600

Equivalent units of production104,000

Becker Professional Education

Registered to: Blake Smith

Note B: Direct labor costs incurred$182,880 Factory overhead incureed391,160 Conversion costs incurred $574,040 Equivalent units ÷ 98,400 [Note 2] Equivalent unit cost of materials$5.83

Note 2: Under the FIFO method, the equivalent units of production is comprised of three parts: the completion of units on hand at the beginning of the period, the units started and completed during the period, and the units partially completed at the end of the period. Applying these principles to the given fact pattern, the total equivalent units of production for conversion costs is determined as follows: Equivalent units for the first quarter: Work in process, beginning (16,000 units  80% to complete)12,800

Units started and completed: Units completed and transferred out92,000 Units in beginning inventory(16,000)76,000

Work in process, ending (24,000 units  40% complete)9,600

Equivalent units of production98,400

Choices “b”, “c”, and “d” are incorrect, per the above explanation.

[thechamp26]

So you want easy questions? Do you want to fail exams because you are overly confident with these “softball” questions that you are requesting? Shame on Becker for giving you questions that combine topics that you should know and that you actually have to think through. :/

[Anonymous]

Thanks for the support thechamp26; I don't appreciate the sarcasm.

I would like the Becker folks to at least align the questions to warm you up before they launch into a question that takes 20 minutes to analyse and complete. Ironically, after my first post, I continued on with some of the B1 costing material and towards the end they have some FIFO/Weighted Avg computations that are a bit more strait forward.

Thanks again champ…

[thechamp26]

I wasn't trying to be sarcastic, but can you imagine the scores people would get if Becker had straight forward questions? Believe it or not, those tough questions that you have to think through that you get incorrect, are exactly the type of questions that you learn the most from.

[Anonymous]

If you're looking for some “easier” confidence building type questions before building up to the more complex MCQ, I'd work through the examples in the book (within the lectures)… Maybe that will help you really get the basics down…

[IwannaBaCPA]

I understand your frustration with BEC questions in Becker…the supplemental ones were terrible! But the others who have posted have good advice, like it or not…it is important to have a mix of questions. You can always arrange the order of the questions yourself by skipping ones that annoy you. I did that a lot with BEC and came back to the lengthy ones…

Cpareviewforfree.com has some good shorter questions as well so you can mix it up.

BEC: 79 - April 2011
FAR: 78 - May 2011
AUD: 81 - May 2012
REG: 79 - October 2012
Ethics: Passed - March 2013
I am finally DONE!

[Anonymous]

The Wiley questions are just as hard for BEC. Lots of overlap between Becker and Wiley. I just understood Yaeger's way of teaching BEC better than Becker's way. They actually walk you through those really tough questions. Becker was good for IT and Econ though.

[SONIA]

Smith-I totally understand what you are saying! I felt the same way as i struggled through these lengthy problems! Personally, such complicated problems made me frustrated and i didn't even want to study anymore. I don't mind hard questions but then Becker should do a better job in their lectures explaining and walking us through questions like that. They just go over basic info and then throw you in water full of sharks lol. I am re-doing the cost accounting questions and just marking the ones i totally don't get. maybe practice will sink it all in =) Good luck!

[Anonymous]

I guess I don't mind the difficulty of the questions as they really do teach you a lot when you get a question wrong and the “yellow beam of death” flashes across the screen.

It really comes down to the efficient use of time. It's hard to be efficient when I spend 5 hours on 100 questions trying to figure them out because they are so complex. I do think there is a better way to warm up Becker students, as opposed to laying on the nastiest questions available.

Hopefully, it all pays off on Friday. I don't want to study again for BEC.

[Anonymous]

“yellow beam of death” LOL

[Author]

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