Managerial Accounting - UFC1 WGU: Questions With
Expert Solutions
Which of the managerial accounting improves a company's ability to plan and
control operations? Right Ans - It generates detailed information on
product cost
Which statement describes period cost? Right Ans - They flow directly to
the current income statement expenses.
A company has the following costs associated with a job:
- Direct Materials: $400
- Direct labor: $450
- Work in process: $950
- Revenue from job: $1450
What is the amount of overhead applied to this job? Right Ans - Revenue -
(direct materials+work in progress) = $100
Management wants to assess how many units must be sold to earn a profit
The most useful analysis will separate costs into which categories? Right
Ans - Fixed and variable
A manufacturing company budgeted for $1,240,000 in manufacturing
overhead and expected 400,000 direct labor hours. Actual overhead was
$1,200,000 and actual direct labor hours were 390,000.
Was manufacturing overhead over or under applied and by how much?
Right Ans - Over applied by $9000
Cost of goods manufactured equals $87,000 for the year. Finished goods
inventory is $10,000 at the beginning of the year and $4,000 at the end of the
year. Beginning and ending work n process are $4,000 and $5,000
respectively.
How much is the cost of goods sold for the year? Right Ans - $93,000
, The following information relates to a company's production activities for the
month of October:
Est Amts Actual Amts
Cost of Direct Labor $18,500 $19,000
Cost of manuf overhead $22,000 $24,000
Direct Labor hours 900 920
Using direct labor hours as the allocation base, what is the predetermined
overhead rate? Right Ans - $24.44 per direct labor hour
The following amounts were reported by a company before adjusting its
overapplied manufacturing overhead of $48,000:
Cost of goods sold $730,000
Applied overhead $368,000
Actual overhead $320,000
What is the company's adjusted cost of goods sold? Right Ans - $682,000
The manufacturing operations of a company had the following balances for
the year:
Beginning Balance End Balance
Raw materials $84,000 $91,000
Work in process $45,000 $59,000
Finished goods $28,000 $23,000
The company transferred $918,000 of completed goods out of work in process
during the year. The overhead is underapplied by $3000.
What is the adjusted cost of goods for the year. Right Ans - $926,000
A company provides he following data for its process costing system:
Equivalent units for materials
10,000
Material costs for units in beginning inventory
Expert Solutions
Which of the managerial accounting improves a company's ability to plan and
control operations? Right Ans - It generates detailed information on
product cost
Which statement describes period cost? Right Ans - They flow directly to
the current income statement expenses.
A company has the following costs associated with a job:
- Direct Materials: $400
- Direct labor: $450
- Work in process: $950
- Revenue from job: $1450
What is the amount of overhead applied to this job? Right Ans - Revenue -
(direct materials+work in progress) = $100
Management wants to assess how many units must be sold to earn a profit
The most useful analysis will separate costs into which categories? Right
Ans - Fixed and variable
A manufacturing company budgeted for $1,240,000 in manufacturing
overhead and expected 400,000 direct labor hours. Actual overhead was
$1,200,000 and actual direct labor hours were 390,000.
Was manufacturing overhead over or under applied and by how much?
Right Ans - Over applied by $9000
Cost of goods manufactured equals $87,000 for the year. Finished goods
inventory is $10,000 at the beginning of the year and $4,000 at the end of the
year. Beginning and ending work n process are $4,000 and $5,000
respectively.
How much is the cost of goods sold for the year? Right Ans - $93,000
, The following information relates to a company's production activities for the
month of October:
Est Amts Actual Amts
Cost of Direct Labor $18,500 $19,000
Cost of manuf overhead $22,000 $24,000
Direct Labor hours 900 920
Using direct labor hours as the allocation base, what is the predetermined
overhead rate? Right Ans - $24.44 per direct labor hour
The following amounts were reported by a company before adjusting its
overapplied manufacturing overhead of $48,000:
Cost of goods sold $730,000
Applied overhead $368,000
Actual overhead $320,000
What is the company's adjusted cost of goods sold? Right Ans - $682,000
The manufacturing operations of a company had the following balances for
the year:
Beginning Balance End Balance
Raw materials $84,000 $91,000
Work in process $45,000 $59,000
Finished goods $28,000 $23,000
The company transferred $918,000 of completed goods out of work in process
during the year. The overhead is underapplied by $3000.
What is the adjusted cost of goods for the year. Right Ans - $926,000
A company provides he following data for its process costing system:
Equivalent units for materials
10,000
Material costs for units in beginning inventory
