[Excel14]

Going through final review now (exam is next Sunday), and some of these master budget, cash budget, operations budget questions in Glein, are taking me 2-3 minutes to get through (if at all). I’m trying to push through, but I sure hope my exam doesn’t contain a lot of that or cost accounting (although my cost scores are improving). Not really a question; guess I am venting. Lol

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[monikernc]

excel, they are tough. just keep powering through. understand the fundamentals and go for it. my exam is saturday and i am hoping i have studied for a much harder exam than i will see. i believe the phrase “a mile wide and an inch deep” has been used to describe exam. fingers crossed knowing the concepts will get us 75s. good luck!

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[Excel14]

Monikernc,

Thanks for the encouragement. Good luck to you too. I too, am hoping the exam won't be as difficult as these review questions. Trying desperately to get a grasp on all of this, but wow. 🙂

BEC (2/28/16) ----- 78
FAR (09/10/16)-----
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CIA, CGAP, CFE

[monikernc]

it is a lot but you can do it.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Anonymous]

Good mcq for byproduct vs joint cost accounting

Kode Co. manufactures a major product that gives rise to a byproduct called May. May's only separable cost is a $1 selling cost when a unit is sold for $4. Kode accounts for May's sales by deducting the $3 net amount from the cost of goods sold of the major product. There are no inventories. If Kode were to change its method of accounting for May from a byproduct to a joint product, what would be the effect on Kode's overall gross margin?

A.
No effect

B.
Gross margin increases by $1 for each unit of May sold

C.
Gross margin increases by $3 for each unit of May sold

D.
Gross margin increases by $4 for each unit of May sold

[monikernc]

the difference will always be the separable cost. so going from byproduct to joint you add the separable cost to gross margin. going from joint to byproduct you would subtract from gross margin. in this case, you are going from byproduct to joint so you add the separable cost to gross margin and gross margin will increase by $1

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[stozzo88]

The gross margin will increase by 1 since the selling expense will not longer be netted to COGS with the major product. It will go below the line with period expenses once the joint product costing is initiated.

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[Anonymous]

Wow I just noticed that by mistake I posted the mcq on this thread lol! my apologies Excel14. I wanted to post the mcq on the BEC study group already understanding the answer bc I thought that it was a good practice mcq 🙂 Anyways thanks for the replies.

[Excel14]

No worries. I understand. I ran across that same question in my studies, and didn't at first understand the logic. 🙂

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[Author]

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