BEC Study Group Q1 2017
December 29, 2016 at 2:29 pm #1402395
Thanks. I was working Currency Exchange rate problems all day yesterday. Today, I am moving into financial management. The currency exchange rate stuff always confused me.December 29, 2016 at 2:58 pm #1402409December 29, 2016 at 3:09 pm #1402416
@thomashallberg thanks! I was hoping the answer wasn't to just do MCQs, but I guess the method has been proven to work.
I think I may try to write down all the formulas in one piece of paper and add notes to them as I do the MCQs.December 29, 2016 at 6:32 pm #1402619
Yeah, that is what I did today. Also, every question I do regardless if I know the formula, I still write it out to drill it into my memory. Feeling ready, I take BEC on the 6th. Becker final test Avg was a 67!December 29, 2016 at 8:34 pm #1402674
For those looking for more MCQ's to practice with.
Wiley CPA has a 14 days free trial period which gives you full access to both the lectures and MCQ's.
Wish me luck 🙂December 30, 2016 at 11:06 am #1402946
Hey thanks for the extra link for MCQs and lecture.
My exam is on 13th. Please share your exam experience.December 30, 2016 at 11:39 am #1402959
Will do! One week until test day!December 30, 2016 at 11:52 am #1402965
Good luck to you guys testing in the next few days. I am still wondering through the materials, nailing down a few more sections before I non stop drill mcq's (still kinda in between notes first then mcq's) Getting it done, time to pass.December 30, 2016 at 12:37 pm #1403009
Does anyone have any supplemental and relevant IT links?
Specifically for the inevitable out of nowhere exam questions we'll get that Roger & others don't really touch on such as cloud computing.December 30, 2016 at 9:10 pm #1403409
Can anyone please explain me from where they got $10502 interest outflow?
CPA 2016.0 BEC
Debt, Equity, Leasing, Question # 300
The treasury analyst for Garth Manufacturing has estimated the cash flows for the first half of next year (ignoring any
borrowings) as follows:
February 2 4
March 2 5
April 2 3
May 4 2
June 5 3
Garth has a line of credit of up to $4 million, on which it pays interest monthly at a rate of 1% of the amount utilized.
Garth is expected to have a cash balance of $2 million on January 1 and no amount utilized on its line of credit.
Assuming all cash flows occur at the end of the month, approximately how much will Garth pay in interest during the
first half of the year?
Incorrect C. $80,000
You answered C. The correct answer is B.
To calculate how much Garth will pay in interest during the first half of the year, the table provided must be used to
develop an ongoing cash/credit balance:
Cash Change in
Opening Cash Cash Outflow for Line of Ending Cash
Cash Balance Inflows Outflows Interest Credit Balance
3,000,000 2,000,000 4,000,000
1,000,000 2,000,000 5,000,000
0 2,000,000 3,000,000
0 4,000,000 2,000,000
0 5,000,000 3,000,000
Opening Balance Change in Ending Balance Interest
Line of Credit Line of Credit Line of Credit Payments
0 0 0
0 0 0 0
0 2,000,000 2,000,000 0
2,000,000 1,020,000 3,020,000 20,000
The total interest payments as shown above equal $60,702. This is approximately $61,000.
The trick with this problem is to remember that interest is an additional cash outflow in the month paid.December 30, 2016 at 9:21 pm #1403412
I'm convinced BEC is the devil. I scheduled my rematch on Jan 18th and I can't keep myself motivated at all. I decided to redo my entire Wiley CPAexcel class because I didn't finish it the first time, then drill the extra wiley questions and Ninja mcq's until the test. Since I'm already familiar with the material I'm starting to think I'm just wasting my time and the entire class redo is just boring me to tears. Thoughts on a retake when you were close the first time?December 31, 2016 at 7:24 am #1403507
I am currently going through all the Gleim sections again and I find that there are some details I didn't fully understand the first time I am drilling. I take the test on the 20th so I am definitely drilling the material in again. Really, I could have slid by doing the weaker areas but I am tired of failing at this point. So I am going all out.December 31, 2016 at 8:04 am #1403511
it's the opening balance (or previous year's ending balance) * 1%
Also what kind of question says hey the real answer is close enough to one of the options so do that. what?? That's ridiculous.December 31, 2016 at 10:52 am #1403601
@mytime2shine I know, it's my last one so I figured do it all again so I don't miss anything. Just hate the material. At least we are all here together, I'm probably not the only one spending new years eve doing mcqs!!! And I really want to avoid q2 if at all possible.December 31, 2016 at 10:54 am #1403604
No, you're not. I am going at it MCQs hard!!!!December 31, 2016 at 11:57 am #1403640
A company estimates that it will sell 100,000 units of finished goods in March. Each finished good
requires 5 feet of raw materials. The projected March 1 inventory balances are 10,000 units of finished
goods and 40,000 feet of raw materials. Desired March 31 inventory levels are 9,000 units of finished
goods and 42,000 feet of raw materials. What amount of raw materials should the company plan to
purchase during March?
A. 497,000 feet.
B. 500,000 feet.
C. 502,000 feet.
D. 503,000 feet.
Can someone please explain why the answer is 497 and not 502!
Thank youDecember 31, 2016 at 1:32 pm #1403688
99,000 <—squeeze made
99,000 to be made = 495,000 feet to use
497,000 <—- squeeze to be purchase
<495,000> used per above
Check my math but that's it. You should always start from the inventory amount since that's your real end goal. If you had purchased 502,000 ft, you would have used 500,000 ft = 100,000 inventory made. If that was the case then 101,000 would have been sold and not 100,000 like the problem indicates.
<101,000> sold <— Not right!
9,000December 31, 2016 at 1:34 pm #1403694
I've decided to study this simultaneously w/ FAR. There is no way I can be ready for either one by the end of January, so I am stretching them both towards the end of the window. Wish me luck!December 31, 2016 at 1:40 pm #1403699
@mtaylo24 good luck! for me BEC is Jan 21, and FAR retake is Feb 18. Really trying to finish this before tax season starts. I just want to be done with this stuff and enjoy summer 2017. We have fridays off in the summer so I would really love to spend them binge watching Netflix and not looking at the Becker books 😉December 31, 2016 at 1:59 pm #1403718
@nathalia, best of luck with you as well. I have found that when I put down a section for a short amount of time, I forget everything. There is no way I can put either one of them off. Studied Gleim ch 18 for intro to cost today and got my butt kicked pretty bad at first. I just want to be done! Screw the summer, I want to see the Spring! 😎😎😎December 31, 2016 at 2:14 pm #1403727
GoodluckDecember 31, 2016 at 2:47 pm #1403741
A job order cost system uses a predetermined factory overhead rate based on expected volume and expected fixed cost. At the end of the year, underapplied overhead might be explained by which of the following situations?
Actual volume, greater than expected; Actual fixed costs, greater than expected
Actual volume, greater than expected; Actual fixed costs, less than expected
Actual volume, less than expected; Actual fixed costs, greater than expected
Actual volume, less than expected; Actual fixed costs, less than expected
Can someone please explain why the answer is C? I cant wrap my head around the actual volume being less than expected when OH was under applied.
Thanks!December 31, 2016 at 6:37 pm #1403859
jelani1911ParticipantDecember 31, 2016 at 6:45 pm #1403862December 31, 2016 at 7:45 pm #1403879
Underapplied is unfavouable (U=U) Beckers suggested way of remembering!
You want to produce more volume than what was budgeted because that will increase your revenue so when the actual volume is less than budgeted, then that's unfavorable.
On the other hand, you want to minimize your cost so when ur actual cost is greater than what was budgeted then it is unfavorable and therefore underapplied.December 31, 2016 at 7:47 pm #1403882December 31, 2016 at 7:50 pm #1403885December 31, 2016 at 8:11 pm #1403894
@mytime2shine Not sure if my opinion helps, but I've been on this stupid testbank since March (of course taking breaks to focus on other sections) and I still can't get them all right, so that means its a good thing. I prefer the Gleim TB to Ninja and I felt that they were a good representation of what I found on the test. I found lots of Ninja's on the actual as well, but I will give Gleim the edge over how it is organized.
This go round, I do a light reading first, then powerpoint, then I do all of the questions in order, then I do random 20 question sessions for all of the questions in the chapter. I don't move to the next chapter until I score an 80%. I feel the strategy is working.December 31, 2016 at 8:48 pm #1403898
Ok good. I felt Gleim did compare to actual scores with BEC ( 3 points) lower, but I just want to work more on it so I can get up to the 75 mark. Sometimes, I feel like it's not gonna stick but I'm too deep at this point. Trying to finish by June is my goal.January 1, 2017 at 5:06 pm #1404267
Can someone please explain this question to me please? This is the most logical way i thought about it, but it's not the right answer and I tried to reason why I was wrong and the answer key was right but I still don't get it:
July: 30000* .6= 18000
Aug: 30000* .3 + 15,000 * .6 = 18000
Sept 30000* .1 + 150000* .3 + 35000 *.6
but the answer is 30,125
On June 30, 20X3, a company is preparing the cash budget for the third quarter. The collection pattern for credit sales has been 60% in the month of sale, 30% in the first month after sale, and the rest in the second month after sales. Uncollectible accounts are negligible. There are cash sales each month equal to 25% of total sales. The total sales for the quarter are estimated as follows: July, $30,000; August, $15,000; September, $35,000. Accounts receivable on June 30, 20X3, were $10,000. What amount would be the projected cash collections for September?
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