Cost and Managerial Accounting -
D101 WGU/99 Q’s and A’s
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. - -Credit 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. - -Debit 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. - -Debit 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 - -$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. - -They 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. - -The 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 - -$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?
D101 WGU/99 Q’s and A’s
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. - -Credit 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. - -Debit 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. - -Debit 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 - -$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. - -They 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. - -The 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 - -$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?
