Becker 3 and 4 part questions

  • Creator
    Topic
  • #194357
    haseltonk
    Member

    I’ve read here before that questions on the “real” exam will not be as in depth or convoluted as some of the 3 and 4 part Becker questions. That being said, does anyone know a better way to approach the cost of goods sold calculation questions that Becker has in B1? The ones I’m talking about give you starting and ending direct materials, WIP and finished goods as well as production data for the month (labor, actual o/h, direct materials purchased, transportation in, purchase returns and allowances), and asks you to calc COGS for a given month.

    The answer they provide is completely different than in the text, and really isn’t covered in the lecture (at least not the way the MCQ answers it). I’m not going to type the whole question b/c I’d be typing for hours, but it is a 3 part answer. If you have Becker it’s #74 out of 107 questions in B1: Operations Management: Cost measurement methods and techniques (CPA-3956).

    1. Find the plug for cost of materials used using beginning and ending direct material numbers, purchases, transportation, etc.

    2. Take the cost of materials (from step 1) and add it to direct materials, labor and o/h to get total manufacturing cost.

    3. Start with beginning WIP plus manufacturing cost (from step 2) and plug to find goods transferred to finished goods (since ending WIP balance is known).

    4. Start with beg finished goods, add goods transferred to finished goods (from step 3) and plug to find COGS since ending finished goods balance is already known.

    Is it really necessary to memorize this if I can solve each individual step (using BASE). Right now the flow of the 4 steps above are not sticking even though I understand it’s not rocket science. If I need to know it, any tricks to memorizing the order?

    Thanks

  • You must be logged in to reply to this topic.