WGU Managerial Accounting - Questions With Detailed
Solutions
Process cost systems are used to apply costs to similar products that are
mass-produced in a continuous fashion Right Ans - True
Equivalent units are the work done during the period, expressed in fully
completed units ("Equivalent Units"). Right Ans - True
A process cost system would be used by all of the following except a(n)
oil company.
advertising company.
computer chip company.
chemical company. Right Ans - An Advertising Company
Beginning work in process is not part of the equivalent units of production
formula ("Refinements on the Weighted-Average Method"). Right Ans -
True
Tip Top Painting Company has the following production data for January:
●Beginning work in process, 0 units●Units transferred out, 35,000●Units in
ending work in process, 10,000, which are 30% complete for conversion costs
Materials are added only at the beginning of the process.Compute equivalent
units of production for both materials and conversion costs. Right Ans -
10000*30%=3000
DM Right Ans - Direct Materials
TMC Right Ans - Total Manufacturing Costs
COGm Right Ans - Cost of Goods Manufactured
COGs Right Ans - Cost of Goods Sold
, GP Right Ans - Gross Profit
POR Right Ans - Predetermined Overhead Rate
OHA Right Ans - Overhead Applied
A-COGs Right Ans - Adjusted Cost of Goods Sold
WA-EUP Right Ans - Weighted Average Equivalent Units of Production
C per EUP Right Ans - Costs per Equivalent Units of Production
CPAR Right Ans - Cost Pool Activity Rate
TC Right Ans - Total Costs
CFIS Right Ans - Contribution Format Income Statement
DC Right Ans - Direct Costs
SoAPF Right Ans - Sell or Process Further
RoR Right Ans - Retain or Replace
ElSOP Right Ans - Eliminate Segment of Product
MItbP Right Ans - Merchandise Inventory to be Purchased
Management Decision Process Right Ans - Identify the problem and assign
responsibility
Determine and evaluate possible courses of action
Make a decision
eview results of the decision
Incremental Analysis. Right Ans - The process used to identify the financial
data that change under alternative courses of action.
Incremental analysis Right Ans - Includes the probable effects of the
decision on future earnings.
Solutions
Process cost systems are used to apply costs to similar products that are
mass-produced in a continuous fashion Right Ans - True
Equivalent units are the work done during the period, expressed in fully
completed units ("Equivalent Units"). Right Ans - True
A process cost system would be used by all of the following except a(n)
oil company.
advertising company.
computer chip company.
chemical company. Right Ans - An Advertising Company
Beginning work in process is not part of the equivalent units of production
formula ("Refinements on the Weighted-Average Method"). Right Ans -
True
Tip Top Painting Company has the following production data for January:
●Beginning work in process, 0 units●Units transferred out, 35,000●Units in
ending work in process, 10,000, which are 30% complete for conversion costs
Materials are added only at the beginning of the process.Compute equivalent
units of production for both materials and conversion costs. Right Ans -
10000*30%=3000
DM Right Ans - Direct Materials
TMC Right Ans - Total Manufacturing Costs
COGm Right Ans - Cost of Goods Manufactured
COGs Right Ans - Cost of Goods Sold
, GP Right Ans - Gross Profit
POR Right Ans - Predetermined Overhead Rate
OHA Right Ans - Overhead Applied
A-COGs Right Ans - Adjusted Cost of Goods Sold
WA-EUP Right Ans - Weighted Average Equivalent Units of Production
C per EUP Right Ans - Costs per Equivalent Units of Production
CPAR Right Ans - Cost Pool Activity Rate
TC Right Ans - Total Costs
CFIS Right Ans - Contribution Format Income Statement
DC Right Ans - Direct Costs
SoAPF Right Ans - Sell or Process Further
RoR Right Ans - Retain or Replace
ElSOP Right Ans - Eliminate Segment of Product
MItbP Right Ans - Merchandise Inventory to be Purchased
Management Decision Process Right Ans - Identify the problem and assign
responsibility
Determine and evaluate possible courses of action
Make a decision
eview results of the decision
Incremental Analysis. Right Ans - The process used to identify the financial
data that change under alternative courses of action.
Incremental analysis Right Ans - Includes the probable effects of the
decision on future earnings.
