CMA Study Group

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  • 1.  CMA P1

    Posted 10-10-2019 10:33 AM
     why 560 ? 


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    Moataz Mohamed CPA
    Accountant
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  • 2.  RE: CMA P1

    Posted 10-11-2019 09:39 AM
    ​I'm with you. When I work this problem I get $540,000. I would be interested to know if 560 is really the correct answer.

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    Joshua Sykes
    Accountant
    Van Buren AR
    United States
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    Original Message


  • 3.  RE: CMA P1

    Posted 10-11-2019 01:02 PM
    Answer B : 540000​

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    EmersonGeorgeKuwait
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    Original Message


  • 4.  RE: CMA P1

    Posted 10-15-2019 12:30 PM
    I believe that the sale of $728,000 for August represent 130% of the cost. Therefore the 100 % cost will be (728,000/130)*100= $560,000

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    Sylvie Paluku
    Student
    Huntington WV
    United States
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    Original Message


  • 5.  RE: CMA P1

    Posted 10-16-2019 02:56 AM
      |   view attached
    cm/ unit ?

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    Mahmoud
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    Original Message


  • 6.  RE: CMA P1

    Posted 10-19-2019 09:35 AM
    (CM = sales - variable costs)  the "contribution" that's left is Fixed costs which is used for a variety of other analysis like breakeven so it would be included in the calculation for CM while sales and VC wouldn't. CM = Fixed costs/units sold = 365000/250000 = 1.46

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    Sade Meeks
    Student
    Jacksonville FL
    United States
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    Original Message


  • 7.  RE: CMA P1

    Posted 10-18-2019 08:24 AM
    ​I'm getting $540,000.  Why $560,000? You should subtract the amount purchase in July for August ($140,000) and add the amount you need to purchase in August for September $120,000.  Why is it not then $560,000 - $140,000 + $120,000.  Anyone?

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    Alisha Moll
    Analyst
    Hamler OH
    United States
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    Original Message


  • 8.  RE: CMA P1

    Posted 10-24-2019 06:53 PM
    I am with all of you guys. If the question was asking what would be the amount of inventory for a sale of $728,000 (priced at cost + 30%) then Yes, I see how I can get $560,000 but I think the question is asking​ "cost of inventory we need to purchase, keeping in mind the beginning and ending inventory requirements" in which case I get $540,000. I think the wording of the question is off?

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    Muhammad Waziri
    Analyst
    Alexandria VA
    United States
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    Original Message


  • 9.  RE: CMA P1

    Posted 10-25-2019 02:53 AM
    The question tells the sales for August are $728,000 cost of sales must be $560,000 and purchases must be opening inventory = ($560,000/1.3 x 0.25)= $140,000
    Closing inventory= ($624,000/1.3 x 0.25)= $120,000
    Purchases for August= COGS - opening + closing
    Purchaes= $560,000 - $140,000 + $120,000= $540,000
    Total Cost incurred for August sales(not purchases) however is $560,000.

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    Syed Muhammad Wasiq Saleem
    None
    Karachi
    Pakistan
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    Original Message