[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/

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

[jpowell31]

Becker: 00481

Ahm Corp. owns 90% of Bee Corp.'s common stock and 80% of Cee Corp.'s common stock. The remaining common shares of Bee and Cee are owned by their respective employees. Bee sells exclusively to Cee, Cee buys exclusively from Bee, and Cee sells exclusively to unrelated companies. Selected information for Bee and Cee follows:

………………………… Bee Corp………….Cee Corp.

Sales…………………..$130,000…………. $91,000

Cost of sales………….100,000…………….65,000

Beginning inventory….None ……………….None

Ending inventory………None…………….. 65,000

What amount should be reported as gross profit in Bee and Cee's combined income statement

The answer is $ 41000

can someone please explain this to me in a simple way? beckers makes little sense.

[jpowell31]

haha @CPA50 that's pretty good yeah. i only seem to visualize in colors….and it seems like my weak areas are very dark.

[CPA50]

Colors are great too – what colors do you see in FAR? Let's turn it into a giant rainbow that we can slide down into the pot of gold 🙂 Um, yeah, sorry…my creative side just hijacked my brain.

AUD 88 (expired), 80 retake
FAR 64,69,67,73,67,73,73,73, August 3
REG 75 (expired) September 7
BEC 72, 77

The adventure continues...

[Anonymous]

jpowell31

Profit margin = 23% 30/130

multiply it by leftover inventory = 15000

Now eliminating entry:

DR Sales 135000

CR COGS 115000 plug

CR Inventory 15000

Now your total sales = 91000 (221-130)

total cogs = 50000 (165-115)

gross profit 41000

[jpowell31]

thanks!

wait…maybe i'm just too lazy but wheres the $135 sales coming from

[Anonymous]

haha sorry dr sales 130000

[jpowell31]

i don't know i see everything in colors….let's not get too weird lol…like the days of the week, the months in the year, countries…all seem to have a color in my mind… FAR is red, though, AUD is yellow, BEC is green and REG is blue.

[jpowell31]

ahh perfect anna, thanks! not sure how i missed this section. my brain refuses to latch on. i'll write that down.

[Mehwish]

I just started studying for FAR (LAST ONE! I HOPE!) and I did a few questions form the Wiley book. Did terrible on the the questions related to extraordinary items. It was really difficult picking out when something was both infrequent and unusual. Any specific way to identify when an event is both unusual and infrequent?

[jpowell31]

its just going to take practice, unfortunately – there's a lot of those tricks in FAR :(… some will become obvious after a while.

[HopefulCPA0601]

got a 90% on the ninja practice exam.. im going to try wiley and becker too probably next two or three days.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[nosleep135]

Not doing so hot on the FAR homework questions (ranged from 60-70 while using the book occasionally), I have scheduled for the exam for Aug 31st…went through the readings/homework questions (using becker) once and don't know if I should go for a second reading or just focus on the homework/simulations from now to the test day. Any suggestions?

[Anonymous]

There is a way

natural disaster must be extremely unusual (not sure what's the definition of ‘extremely' though)

If the event occurs at least once in 10 years, it's too frequent to qualify it is infrequent , so I guess if the last earthquake in this area was 11 years ago it could be considered infrequent

fire, strike, bankruptcy don't qualify

[jstay]

anjanja & jpowell,

i solved that one by taking the 100 cogs to cee minus 50(half were left over) so i get 50.

then do cees sales of 91,000- the 50,000 and get 41,000

[jpowell31]

ok see jstay that's where becker confused me…what is the “50% left with”?? where does that come from.

[Author]

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