WGU D101 COST AND MANAGERIAL ACCOUNTING EXA1

WGU D101 COST AND MANAGERIAL
ACCOUNTING EXAM


A manufacturing company used cash to purchase raw materials costing $3,000.
What should be included in the journal entry necessary to record this purchase of
raw materials?
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000.
Credit to accounts payable for $3,000.
Credit to cash for $3,000. - ANSWERCredit to cash for $3,000.

A company's actual manufacturing overhead was $156,000, and applied
manufacturing overhead was $172,000.
What should be included in the journal entry necessary to close the manufacturing
overhead account?
Debit to manufacturing overhead for $16,000.
Debit to cost of goods sold for $16,000.
Debit to cost of goods sold for $156,000.
Debit to manufacturing overhead for $156,000. - ANSWERDebit to manufacturing
overhead for $16,000

A company that manufactures wood furniture paid $12,500 in cash for the wages of
woodworkers who create the wood furniture in the factory.
What should be included in the journal entry necessary to record this payment of
wages to the woodworkers?
Credit to work-in-process inventory for $12,500.
Debit to work-in-process inventory for $12,500.
Credit to manufacturing overhead for $12,500.
Debit to manufacturing overhead for $12,500. - ANSWERDebit to work-in-process
inventory for $12,500.

Data for an art supplies company for the year are as follows:
Finished goods inventory, beginning balance
$300,000
Work-in-process inventory, ending balance
215,000
Underapplied manufacturing overhead
40,000
Finished goods inventory, ending balance
250,000
Work-in-process inventory, beginning balance
200,000
Cost of goods manufactured
685,000
What is the company's computed adjusted cost of goods sold?
$630,000

, $710,000
$715,000
$775,000 - ANSWER$775,000

What is true about debits in the work-in-process T-account during the period?
They are costs of goods manufactured during the period.
They are direct material costs incurred only during the period.
They are direct labor costs incurred only during the period.
They are costs put into production during the period. - ANSWERThey are costs put
into production during the period.

Which cost item does the cost of goods manufactured schedule begin with?
The cost of materials purchased during the period.
The cost of direct labor incurred during the period.
The costs related to manufacturing overhead incurred during the period.
The cost of materials placed into production. - ANSWERThe cost of materials placed
into production.

Data for an auto company for the year are as follows:
Total manufacturing costs
$400,000
Finished goods inventory, beginning balance
240,000
Work-in-process inventory, ending balance
100,000
Overapplied manufacturing overhead
30,000
Finished goods inventory, ending balance
200,000
Work-in-process inventory, beginning balance
115,000
What is the auto company's computed cost of goods manufactured?
$445,000
$415,000
$385,000
$355,000 - ANSWER$415,000

An entrepreneur identifies a business opportunity to produce and market custom-
printed T-shirts to local organizations. The entrepreneur plans to use activity-based
costing.
Which type of costs should be associated to the production of each custom-printed
T-shirt in the future using cost drivers?
Direct labor costs only
Direct materials costs only
All the manufacturing costs including direct materials and direct labor
All the manufacturing costs except for direct materials and direct labor - ANSWERAll
the manufacturing costs except for direct materials and direct labor

Implementation of an activity-based costing (ABC) system requires an analysis of the
percentage of time employees spend on each overhead cost activity.