1|Page
WGU D101 OBJECTIVE ASSESSMENT V1 & V2
NEWEST 2026 TEST BANK| D101 COST AND
MANAGERIAL ACCOUNTING OA EXAM WITH
COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
D101 OBJECTIVE ASSESSMENT V1.
The profitability of each separate job or product can only be tracked
using which product costing system?
a. Process costing
b. Average unit costing
c. Profitability costing
d. Job order costing - Correct Answer - d.
In completing its job order costing journal entries, ABC Company's
accountants made a credit entry to finished goods inventory.
When is this entry made?
a. When work-in-process inventory is transferred to finished goods
inventory
b. When finished goods inventory is sold
c. When the cost of goods manufactured is being calculated
d. When manufacturing overhead costs are applied to products being
made - Correct Answer - b.
pg. 1
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Which account are the costs of the raw materials, direct labor, and
miscellaneous manufacturing overhead transferred to when the product
is being manufactured?
a. Finished goods inventory
b. Cost of goods sold
c. Work-in-process inventory
d. Direct materials - Correct Answer - c.
When manufacturing is completed on specific products, their costs are
transferred to which account?
a. Cost of goods sold
b. Work-in-process inventory
c. Finished goods inventory
d. Direct materials - Correct Answer - c.
The glue and nails used in a manufacturing process should be included
in which cost?
a. Administrative costs
b. Manufacturing overhead costs
c. Prepaid supplies
d. Direct materials costs - Correct Answer - b.
The purchase of raw materials on open account is recorded by which
journal entry?
a. Debit to accounts payable
b. Credit to raw materials inventory
pg. 2
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c. Credit to work-in-process inventory
d. Debit to raw materials inventory - Correct Answer - d.
Quiet Flag Industries has decided that direct labor hours are a good basis
on which to apply overhead costs to production. Budgeted
manufacturing overhead costs for the coming year are $500,000.
Budgeted direct materials purchases are $400,000. The budgeted direct
labor cost is $720,000, and budgeted direct labor hours for the coming
year are 20,000 hours.
What is Quiet Flag Industries' predetermined overhead rate?
a. $36 per direct labor hour
b. $20 per direct labor hour
c. $25 per direct labor hour
d. $61 per direct labor hour - Correct Answer - c
When manufacturing overhead is underapplied, which entry is included
in closing the manufacturing overhead account?
a. A debit to cost of goods sold
b. A debit to finished goods inventory
c. A debit to work-in-process inventory
d. A debit to manufacturing overhead - Correct Answer - a
Using a traditional overhead allocation method, what is a common
measure of activity?
a. Amount spent on research and development
b. CEO salary
pg. 3
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c. Forecasted sales increase
d. Direct labor hours - Correct Answer - d.
With a traditional overhead allocation method, all overhead is allocated
based on one common measure of activity, such as direct labor hours.
Using an ABC overhead allocation method, overhead is allocated based
on several different measures of activity. What are these measures of
activity called?
a. Total manufacturing costs
b. Direct labor
c. Direct materials
d. Cost drivers - Correct Answer - d.
Overhead is allocated based on several different measures of activity,
which are called cost drivers.
The traditional approach to allocating overhead involves assigning all
the overhead costs to products according to which approach?
a. Multiple measures of activity
b. Using a direct approach
c. One simple measure of activity
d. Using multiple cost drivers - Correct Answer - c.
The traditional approach to allocating overhead involves assigning all
the overhead costs to products according to one simple measure of
activity, such as direct labor or machine hours.
What is a change, or measurable factor, directly related to the amount of
overhead cost associated with the production of a specific item?
pg. 4
WGU D101 OBJECTIVE ASSESSMENT V1 & V2
NEWEST 2026 TEST BANK| D101 COST AND
MANAGERIAL ACCOUNTING OA EXAM WITH
COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
D101 OBJECTIVE ASSESSMENT V1.
The profitability of each separate job or product can only be tracked
using which product costing system?
a. Process costing
b. Average unit costing
c. Profitability costing
d. Job order costing - Correct Answer - d.
In completing its job order costing journal entries, ABC Company's
accountants made a credit entry to finished goods inventory.
When is this entry made?
a. When work-in-process inventory is transferred to finished goods
inventory
b. When finished goods inventory is sold
c. When the cost of goods manufactured is being calculated
d. When manufacturing overhead costs are applied to products being
made - Correct Answer - b.
pg. 1
,2|Page
Which account are the costs of the raw materials, direct labor, and
miscellaneous manufacturing overhead transferred to when the product
is being manufactured?
a. Finished goods inventory
b. Cost of goods sold
c. Work-in-process inventory
d. Direct materials - Correct Answer - c.
When manufacturing is completed on specific products, their costs are
transferred to which account?
a. Cost of goods sold
b. Work-in-process inventory
c. Finished goods inventory
d. Direct materials - Correct Answer - c.
The glue and nails used in a manufacturing process should be included
in which cost?
a. Administrative costs
b. Manufacturing overhead costs
c. Prepaid supplies
d. Direct materials costs - Correct Answer - b.
The purchase of raw materials on open account is recorded by which
journal entry?
a. Debit to accounts payable
b. Credit to raw materials inventory
pg. 2
,3|Page
c. Credit to work-in-process inventory
d. Debit to raw materials inventory - Correct Answer - d.
Quiet Flag Industries has decided that direct labor hours are a good basis
on which to apply overhead costs to production. Budgeted
manufacturing overhead costs for the coming year are $500,000.
Budgeted direct materials purchases are $400,000. The budgeted direct
labor cost is $720,000, and budgeted direct labor hours for the coming
year are 20,000 hours.
What is Quiet Flag Industries' predetermined overhead rate?
a. $36 per direct labor hour
b. $20 per direct labor hour
c. $25 per direct labor hour
d. $61 per direct labor hour - Correct Answer - c
When manufacturing overhead is underapplied, which entry is included
in closing the manufacturing overhead account?
a. A debit to cost of goods sold
b. A debit to finished goods inventory
c. A debit to work-in-process inventory
d. A debit to manufacturing overhead - Correct Answer - a
Using a traditional overhead allocation method, what is a common
measure of activity?
a. Amount spent on research and development
b. CEO salary
pg. 3
, 4|Page
c. Forecasted sales increase
d. Direct labor hours - Correct Answer - d.
With a traditional overhead allocation method, all overhead is allocated
based on one common measure of activity, such as direct labor hours.
Using an ABC overhead allocation method, overhead is allocated based
on several different measures of activity. What are these measures of
activity called?
a. Total manufacturing costs
b. Direct labor
c. Direct materials
d. Cost drivers - Correct Answer - d.
Overhead is allocated based on several different measures of activity,
which are called cost drivers.
The traditional approach to allocating overhead involves assigning all
the overhead costs to products according to which approach?
a. Multiple measures of activity
b. Using a direct approach
c. One simple measure of activity
d. Using multiple cost drivers - Correct Answer - c.
The traditional approach to allocating overhead involves assigning all
the overhead costs to products according to one simple measure of
activity, such as direct labor or machine hours.
What is a change, or measurable factor, directly related to the amount of
overhead cost associated with the production of a specific item?
pg. 4
