[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for FAR. 🙂

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

[mtaylo24]

@aatoural The answer explanation makes sense, but I always freeze up on the below. Any takers?

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mtaylo24]

@mscfisher 300 a day this weekend? I'm gonna try to match that 🙂

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[CPAIN2K17]

@mtaylo is the answer to the second one 20,000?

They sold it for 100,000 but the COGS is 80,000, so there is 20,000 of profit that should not have been recognized?

[HoldMyBeerCPA]

My goodness, I have not seen those types of consolidation questions since college. Can anyone confirm if they've come across a question like this in the NINJA MCQs?

[mtaylo24]

@cpain2k17 – That's not it. You're close but missing a step.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[CPAIN2K17]

@mtaylo for the first question… the GP % is 25%(50k/200k). Consolidated inventory was reduced by 3K (55k-52k). So there was an entry to reduce that profit. So If the profit was 3,000, Then sales would have been 12,000 (3,000/25) .25 being the GP%. Sooo, 12,000 sales – 3,000 profit = 9,000 inventory

[aatoural]

Ay! Gleim is always a nightmare. I have not had any issues with Becker problems. THis is a nightmare! LOL

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

[CPAIN2K17]

@mtaylo ah, the GP % is .3 so only .3 times the 20,000… so 6,000 is the answer??

[mtaylo24]

@aatoural and @turbosandwich You see why my averages are so crappy? LOL!

@cpain2K17 for answer 1, C is the answer but I got a way different calc.

200,000 (pard) + 140,000 (spin) – 308,000 (consolidated) = 32,000 Intra-entity Revenue
(150,000 cogs/200,000 revenues) * 32,000 = 24,000 carrying amt of inventory
24,000 * 37.5% left in inventory = 9,000

For the second answer, you are right, you have to multiply by the gross profit%: 150,000/500,000 or 30%, so 20,000 * 30% = 6,000

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[HoldMyBeerCPA]

That question does seem a bit over the top. Kudos to you mtaylo for having the willingness to tackle that kind of question.

[CPAIN2K17]

Ah, yeah that makes sense. Guess it is just preference on calc since they both seem to work.

[HoldMyBeerCPA]

Well, if I wasn't in a full-fledged panic before, I'm in one now. 9 days until my exam and that question looks like it was written in French (I vaguely recall the theory behind it, but I wouldn't be able to solve it in 90 seconds).

I just wish there was some consistency with all these review courses. Roger's lesson consolidation was much lighter than what Gleim appears to be like.

I really hope that doesn't doom me come exam day.

[CPAIN2K17]

@mytaylo glad you posted those. Been a few weeks since I saw the intercompany lessons and I'm im the middle of governmental lessons now so that was a nice refresher!!

[mtaylo24]

That's exactly why I'm in remix mode with the material. I feel like if I drop a topic for a day I need to start over.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[aatoural]

Okay I was tackeling it but did not get the answer for the 1st correct,but I did get the second one.

I feel like @Anthony right now.

@mtaylo24 I will never forget how I felt with Gleim when studying for REG. After hammering my head with their MCQs all Becker problems were a walk in the park.

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

[Author]

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