WGU D101 Pre Assessment Questions And Answers
With Updated Study Solutions
When would it be appropriate to use job order costing?
When an oil producer produces a large volume of regular unleaded gasoline for a gas station chain of stores.
When a company provides warranty services to a group of customers using a uniform set of processes and
services for each customer.
When a clothing manufacturer produces a line of clothes having the same production cost for each clothing
line.
When a movie producer receives a contract to produce movies following the specifications of the customer.
ANS When a movie producer receives a contract to produce movies following the specifications of the
customer.
Which figures are used in computing a predetermined overhead rate?
Forecasted overhead costs and actual activity level.
Actual overhead costs and forecasted activity level.
Actual overhead costs and actual activity level.
Forecasted overhead costs and forecasted activity level. ANS Forecasted overhead costs and forecasted
activity level.
A company uses direct labor hours to apply manufacturing overhead. Budgeted manufacturing overhead for the
coming year is $640,000. Budgeted direct materials purchases are $400,000. Budgeted direct labor cost is
$720,000. Budgeted direct labor hours for the coming year are 16,000 hours. Actual manufacturing overhead
for the year was $600,000. Actual direct materials purchases were $380,000. Actual direct labor cost was
$700,000. Actual direct labor hours for the year were 20,000 hours.
What is this company's predetermined overhead rate?
$30 per direct labor hour.
$36 per direct labor hour.
$40 per direct labor hour.
$61 per direct labor hour ANS $40 per direct labor hour.
,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. ANS Debit to manufacturing overhead for $16,000.
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 accounts payable for $3,000.
Credit to cash for $3,000.
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000. ANS Credit to cash for $3,000.
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 manufacturing overhead for $12,500.
Debit to work-in-process inventory for $12,500.
Debit to manufacturing overhead for $12,500.
Credit to work-in-process inventory for $12,500. ANS Debit to work-in-process inventory for $12,500.
A company recorded depreciation of $16,000 on factory equipment.
What should be included in the journal entry necessary to record this depreciation on factory equipment?
Credit to work-in-process inventory for $16,000.
Debit to work-in-process inventory for $16,000.
Credit to manufacturing overhead for $16,000.
Debit to manufacturing overhead for $16,000. ANS Debit to manufacturing overhead for $16,000.
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 ANS $775,000
What is true about debits in the work-in-process T-account during the period?
They are costs put into production during the period.
They are costs of goods manufactured during the period.
They are direct labor costs incurred only during the period.
They are direct material costs incurred only during the period. ANS They are costs put into production
during the period.
Which cost item does the cost of goods manufactured schedule begin with?
The costs related to manufacturing overhead incurred during the period.
The cost of materials purchased during the period.
The cost of direct labor incurred during the period.
The cost of materials placed into production. ANS The cost of materials placed into production.
With Updated Study Solutions
When would it be appropriate to use job order costing?
When an oil producer produces a large volume of regular unleaded gasoline for a gas station chain of stores.
When a company provides warranty services to a group of customers using a uniform set of processes and
services for each customer.
When a clothing manufacturer produces a line of clothes having the same production cost for each clothing
line.
When a movie producer receives a contract to produce movies following the specifications of the customer.
ANS When a movie producer receives a contract to produce movies following the specifications of the
customer.
Which figures are used in computing a predetermined overhead rate?
Forecasted overhead costs and actual activity level.
Actual overhead costs and forecasted activity level.
Actual overhead costs and actual activity level.
Forecasted overhead costs and forecasted activity level. ANS Forecasted overhead costs and forecasted
activity level.
A company uses direct labor hours to apply manufacturing overhead. Budgeted manufacturing overhead for the
coming year is $640,000. Budgeted direct materials purchases are $400,000. Budgeted direct labor cost is
$720,000. Budgeted direct labor hours for the coming year are 16,000 hours. Actual manufacturing overhead
for the year was $600,000. Actual direct materials purchases were $380,000. Actual direct labor cost was
$700,000. Actual direct labor hours for the year were 20,000 hours.
What is this company's predetermined overhead rate?
$30 per direct labor hour.
$36 per direct labor hour.
$40 per direct labor hour.
$61 per direct labor hour ANS $40 per direct labor hour.
,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. ANS Debit to manufacturing overhead for $16,000.
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 accounts payable for $3,000.
Credit to cash for $3,000.
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000. ANS Credit to cash for $3,000.
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 manufacturing overhead for $12,500.
Debit to work-in-process inventory for $12,500.
Debit to manufacturing overhead for $12,500.
Credit to work-in-process inventory for $12,500. ANS Debit to work-in-process inventory for $12,500.
A company recorded depreciation of $16,000 on factory equipment.
What should be included in the journal entry necessary to record this depreciation on factory equipment?
Credit to work-in-process inventory for $16,000.
Debit to work-in-process inventory for $16,000.
Credit to manufacturing overhead for $16,000.
Debit to manufacturing overhead for $16,000. ANS Debit to manufacturing overhead for $16,000.
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 ANS $775,000
What is true about debits in the work-in-process T-account during the period?
They are costs put into production during the period.
They are costs of goods manufactured during the period.
They are direct labor costs incurred only during the period.
They are direct material costs incurred only during the period. ANS They are costs put into production
during the period.
Which cost item does the cost of goods manufactured schedule begin with?
The costs related to manufacturing overhead incurred during the period.
The cost of materials purchased during the period.
The cost of direct labor incurred during the period.
The cost of materials placed into production. ANS The cost of materials placed into production.
