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Mujahid_ Abu DahdaParticipant
I GO WITH GIAS AHMED'S EXPLANATION. THAT IS HOW I FELT IT SHOULD BE APPROACHED.
ALTERNATIVELY, ONE WOULD SAY THE DIFFERENCE BETWEEN THE TWO APPROACHES IN TERMS OF PROFIT IS CLOSING INVENTORY VALUED AT FIXED MANUFACTURING OH. SINCE THERE IS OPENING INVENTORY, THIS WILL REDUCE THE CLOSING INVENTORY BY 5,000 UNITS. SO CLOSING INVENTORY VALUATION WILL BE 2000 UNITS X $2 PER UNIT OF FIXED COST = $4,000
HENCE MARGINAL COSTING PROFIT WILL BE $4000 LESS OF ABSORPTION COSTING PROFIT BCOS OF THE INCREASE IN CLOSING INVENTORY.
Mujahid_ Abu DahdaParticipantThank you @Han! I got it.
April 14, 2020 at 7:16 pm in reply to: Allocation of Common Cost: Is this a frequent area in the BEC exam? #2980889Mujahid_ Abu DahdaParticipantThank you @CPAHOPE. Surely you gonna make it next attempt.
About your BEC attempts, what do you think you have been doing wrong in the exams? For me, my first attempt I got 70. I didnt pass because i wasted quality time on the mcq and I had to literally brush through the sims and I had about 30 mins to do WC. I have learnt from my mistake and will make sure i strictly do 90 mins on MCQ, 90 mins on SIM and a whole hr reserve for WC.
From your experience, do you think this is a good plan to stick to? I am open to any advise.Thank you
Mujahid_ Abu DahdaParticipanthey, I think I can try:
First, you have to find purchases figure by drawing up a simple income statement. Note here that inventory decrease has been figure (so no need for an opening and closing inventory). Gross margin is given as 40% of sales, so profit is $1,120. COGS is sales – Gross profit. Hence COGS is $1680. You need purchases to always get COGS, so purchases is COGS – inventory decrease, which is $1610. Note also that if the question had given inventory increase, then purchases would have been the opposite.Next you move onto your payable control account, since the objective is to find the cash actually paid for inventory. Here a figure for decrease in account payable has been given. A decrease has a positive relationship with purchases figure. So amount paid for inventory would be : Purchases figure plus decrease in account payable i.e. $1610 + $150 = $1760. Note an increase in account payable would have been a deduction from purchases figure
Hope this helps!
March 3, 2020 at 1:16 am in reply to: REG Reassurance Thread – Folks who passed please join #2952653Mujahid_ Abu DahdaParticipantI sat to Reg late Nov of 2019. I was confident that I did well. I left the test center feeling I had nailed it and was expecting 90 and above. It turned out I got 75%. I thank God for this, otherwise i would have bummed it! So this test is crazy! Its has an opposite trend. When u feel good after d test, u either struggle to pass or fail it. If u feel bad after the test, bam! U nailed it. So i would say u nailed it @ Spendub!!
February 25, 2020 at 9:42 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2946327Mujahid_ Abu DahdaParticipantCongrats Michael. Hopefully we too can laugh and be surprised on the next score release, like you.
I am happy for you. If I dont pass, I have no option but to retake it in April second week.
Best of prayers for us all!
February 23, 2020 at 12:09 pm in reply to: Just took BEC… Don’t sit this window if you dont have to #2942634Mujahid_ Abu DahdaParticipantBEC was brutal for me yesterday. I should have listened to your advice but hell no! I had already scheduled the test and was determined to take it. I was scoring between 85 to 95% with my review test but that did not show up yesterday. I hardly got an answer correct (at least in my thoughts) and was literally struggling to move to the next question. The SIMS were brutal to me and could not figure out how they could bring a two page risk question in the SIMS. With the time remaining ,there was no way I could figure the correct risk responses without leaving the WC out. I had about 45 mins to do the WC questions. Hopefully I get some points there to cover up for the MCQ and SIMS that i did poorly.
Overall, I didn't feel like my 2.5 months of study really helped. I would have sat to the test without reading that much!! I pray that I pass.Success to all of us that sat this qtr!
I join all those that said BEC was hard. It really hard when taking the test although the study might seem easy, comparable to other tests.
Can the WC really make a difference in your score to pass BEC? It seems thats the only area I'M really confident about. Best of luck to us all!!Mujahid_ Abu DahdaParticipantBEC was brutal for me. I just took the test yesterday and could hardly get an answer correct on both the MCQ and the SIM. I would say read COSO and ERM and IT. Dont forget to practice the AICPA sample test. The test itself is a mirror of the sample test for the SIMS. I pray that I pass but the test was hard for me yesterday. Best of luck!
Mujahid_ Abu DahdaParticipantmy professor had told me once ” the research question of the cpa exams cannot make you pass or fail”. So I'm sure one research question does not worth the fuss. You can pass without answering it or fail by getting it correct. So move on to the next test and start reading. You have already passed!
Mujahid_ Abu DahdaParticipantThank you @ CPAHOPE!!
Mujahid_ Abu DahdaParticipantYou are required to calculate diluted EPS when you have issues like: convertible bonds (into common stock), stock warrant/stock options etc. Just like @AndreA said, both the Net income and the no. of shares will be affected as a result of these issues mentioned above i.e interest savings, additional shares etc. While the basic EPS will remain totally unaffected by these diluted factors, taking the basic EPS a step further is dilution. Hence Diluted EPS!
Take note: sometimes these issues (convt bonds, options etc) are included in questions (especially BEC) and you wo will be asked to calculate the Basic EPS and vice versa. Know that the basic EPS is unaffected!
Hope this helps!Mujahid_ Abu DahdaParticipantI have also tested on a Saturday in Fresno and plan to take my remaining tests on a Saturday. I see it more relaxing to test on a weekend, with little to worry about work matters the next day.
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