WGU D101 UNIT TEST QUESTIONS WITH VERIFIED ANSWERS
100% Correct 81
Incorrect 0
1 of 81
Term
Data for a computer company are as follows :
Operating income : $ 100,000
Degree of operating leverage : 5.0
Assuming sales go up by 10 % , what is the computer company's
operating income ?
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$ 120,000 $ 150,000
$ 130,000 $ 140,000
, Don't know?
2 of 81
Term
Which items are included in work-in-process inventory?
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Raw materials used in
Direct labor costs, raw materials
production, manufacturing
ending inventory, and raw
overhead applied costs, and
materials used in production
raw materials ending inventory
Manufacturing overhead
Raw materials ending inventory,
applied costs, direct labor
direct labor costs, and manufacturing
costs, and raw materials used
overhead applied costs
in production
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3 of 81
Term
A company has a bank loan covenant that requires
it to maintain a profit level of $ 48,000 or more . If the company's
income falls below $ 48,000 , the company must either repay its bank
loan or renegotiate the loan at a higher interest rate . Data for the
,company are as follows : Price per unit : $ 20
Fixed cost : $ 16,000
Variable cost per unit : $ 12
How many units must the company sell in order to reach a target
profit of $ 48,000 ?
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9,000 12,000
6,000 8,000
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4 of 81
Term
Which journal entry is used to record a transfer of completed products
from a factory to the finished goods warehouse?
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Debit finished goods inventory. Debit cost of goods sold.
Credit raw materials inventory. Credit finished goods inventory.
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5 of 81
Term
What is another name for the " work done " or " work performed "
during a period under process costing ?
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Equivalent units of production Identifiable lots of production
Partial units of completion Expense of units of production
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6 of 81
Term
The plant manager for a company has been concerned recently with
the way in which workers have been assigned to different projects . The
plant manager has observed highly trained workers working on
relatively simple jobs . The plant manager has also looked at the time
records and has seen a lot of extra money being paid for overtime
hours . The plant manager has asked to see the labor rate variance .
Actual results Number of units produced : 500 units Number of labor
hours worked : 2,300 hours Total labor cost : $ 85,000 The company
100% Correct 81
Incorrect 0
1 of 81
Term
Data for a computer company are as follows :
Operating income : $ 100,000
Degree of operating leverage : 5.0
Assuming sales go up by 10 % , what is the computer company's
operating income ?
Give this one a go later!
$ 120,000 $ 150,000
$ 130,000 $ 140,000
, Don't know?
2 of 81
Term
Which items are included in work-in-process inventory?
Give this one a go later!
Raw materials used in
Direct labor costs, raw materials
production, manufacturing
ending inventory, and raw
overhead applied costs, and
materials used in production
raw materials ending inventory
Manufacturing overhead
Raw materials ending inventory,
applied costs, direct labor
direct labor costs, and manufacturing
costs, and raw materials used
overhead applied costs
in production
Don't know?
3 of 81
Term
A company has a bank loan covenant that requires
it to maintain a profit level of $ 48,000 or more . If the company's
income falls below $ 48,000 , the company must either repay its bank
loan or renegotiate the loan at a higher interest rate . Data for the
,company are as follows : Price per unit : $ 20
Fixed cost : $ 16,000
Variable cost per unit : $ 12
How many units must the company sell in order to reach a target
profit of $ 48,000 ?
Give this one a go later!
9,000 12,000
6,000 8,000
Don't know?
4 of 81
Term
Which journal entry is used to record a transfer of completed products
from a factory to the finished goods warehouse?
Give this one a go later!
Debit finished goods inventory. Debit cost of goods sold.
Credit raw materials inventory. Credit finished goods inventory.
, Don't know?
5 of 81
Term
What is another name for the " work done " or " work performed "
during a period under process costing ?
Give this one a go later!
Equivalent units of production Identifiable lots of production
Partial units of completion Expense of units of production
Don't know?
6 of 81
Term
The plant manager for a company has been concerned recently with
the way in which workers have been assigned to different projects . The
plant manager has observed highly trained workers working on
relatively simple jobs . The plant manager has also looked at the time
records and has seen a lot of extra money being paid for overtime
hours . The plant manager has asked to see the labor rate variance .
Actual results Number of units produced : 500 units Number of labor
hours worked : 2,300 hours Total labor cost : $ 85,000 The company
