BEC MC – Pls Help!!

CPA Exam Forum BEC BEC Review BEC MC – Pls Help!!

This topic contains 3 replies, has 0 voices, and was last updated by  cpa_punk 4 years, 12 months ago.

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  • #162051

    cpa_punk
    Member

    Please help on this question.

    Beginning Work In process 6000

    Started units 5000

    completed units 4000

    Ending Work in Process 2000

    (Completed @30%)

    What is Margin of Safety?

    I asked some instructors and replied in definition of MOS, FIFO, and WA…I know what those are. but I just dont know how to break this MC that mixed with Inventory + MOS…any hints or help are greatly appreciated!

    #301400

    Minimorty
    Participant

    That is not the entire question, correct? I am pretty sure that Margin of Safety is the amount of revenues (or units sold) that are in excess of your break even point. You don’t have adequate information to determine margin of safety.

    #301401

    Sherrid
    Member

    I have to agree with Minimorty- the margin of safety in dollars is Total Sales – Break Even Sales= Margin of Safety in $

    I could help you if I had all the information.

    #301402

    cpa_punk
    Member

    I wanted second opinion on this MC. I really appreciated for your responses!

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