WGU D101 Objective Assessment Study Guide - Expert-Verified Solutions

WGU D101 Objective Assessment Study Guide - Expert-Verified Solutions Which items are included in work-in-process inventory? - answer - Manufacturing overhead applied costs, direct labor costs, and raw materials used in production A manufacturing company performed the following five actions: Purchased raw materials on account. Used raw materials as indirect materials in the manufacturing process. Applied overhead to the manufacturing process. Transferred the completed goods to the finished goods warehouse. Sold the completed goods. What is the correct sequence of debits necessary in making the journal entries to record these five actions? - answer - Raw materials inventory, manufacturing overhead, work-in-process inventory, finished goods inventory, cost of goods sold. Which journal entry is used to record the application of manufacturing overhead? - answer - Credit manufacturing overhead. In a production facility, indirect labor and related wages include personnel, such as maintenance and repair employees. Assume that indirect labor wages are being accrued but have not yet been paid in cash. Which journal entry is used to record the amount of indirect labor? - answer - Debit manufacturing overhead. Which journal entry is used to record a transfer of completed products from a factory to the finished goods warehouse? - answer - Debit finished goods inventory. A manufacturing business determines the manufacturing overhead rate on the basis of direct labor hours and has estimated the following budget for Year 1: Indirect materials $40,000 Indirect labor $15,000 Building rent* $60,000 Depreciation on production equipment $20,000 Direct labor $60,000 Direct materials $82,000 Machine hours 20,000 hours Direct labor hours 40,000 hours *1/4 of the building is for non-factory administrative offices. The company allocated overhead based on direct labor hours. What is this business's predetermined manufacturing overhead rate using the data above? - answer - $3.00 For a certain year, a bookstore had actual manufacturing overhead of $117,000 and applied manufacturing overhead of $100,000. What should be included in the journal entry necessary to close the manufacturing overhead account? - answer - Debit to cost of goods sold for $17,000. What is represented by the amount of cost of goods manufactured? - answer - Total cost of items for which production was completed during the period. The data for a company for the year: Direct materials purchased 355,000 Actual manufacturing overhead costs 284,000 Direct labor costs 290,000 Direct materials inventory, beginning balance 85,000 Work-in-process inventory, beginning balance 150,000 Applied manufacturing overhead costs 320,000 Finished goods inventory, ending balance 140,000 Direct materials inventory, ending balance 120,000 Work-in-process inventory, ending balance 180,000 Finished goods inventory, beginning balance 200,000 What is the total cost of goods manufactured for the company? - answer - $900,000 The data for a company for the year are as follows: Direct materials purchased 355,000 Actual manufacturing overhead costs 284,000 Direct labor costs 260,000 Direct materials inventory, beginning balance 85,000 Work-in-process inventory, beginning balance 150,000 Applied manufacturing overhead costs 250,000 Finished goods inventory, ending balance 140,000 Direct materials inventory, ending balance 60,000 Work-in-process inventory, ending balance 125,000 Finished goods inventory, beginning balance 100,000 What is the adjusted cost of goods sold? - answer - $909,000 In which case is it appropriate to use job costing? - answer - When the activities performed in each process center are different for all units produced Indirect materials costing $1,000 were transferred from a materials warehouse to be used in production. What should be included in the journal entry necessary to record this transaction? - answer - Debit to manufacturing overhead for $1,000 A company has accrued but ha