Cost and Managerial Accounting - D101 WGU Exam with complete verified solutions 2024

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? 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 All 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. Through which activity can these data be gathered? General ledger posting Employee wage ranking Employee interviews Equivalent unit analysis Employee interviews Which output measures are most important to a manager when maximizing operational performance? Sales volume and labor hours worked Production volume and labor hours worked Sales and production volume Production volume and machine hours worked Sales and production volume A juice company reports these data: Selling price per unit: $7 Variable cost per unit: $3 Number of units sold: 70,000 units Net income: $60,000 What is the juice company's calculated break-even point in number of units? 25,000 units 30,000 units 40,000 units 55,000 units 55,000 units A toy company reports these cost data: Actual Results Total manufacturing overhead: $35,000 Number of units produced: 3,000 Number of labor hours worked: 8,000 The company has established these standards: Total manufacturing overhead: $36,000 Number of direct labor hours worked: 9,000 What is the variable manufacturing overhead spending variance? $3,000 F $3,000 U $8,000 F $8,000 U $3,000 U What is a common cause for a favorable materials price variance? Purchasing higher quality materials Purchasing materials without quantity-related vendor discounts Purchasing lower quality materials Purchasing fewer materials than is required for production Purchasing lower quality materials It is November 1 of Year 1. Sales for a multimedia company for November, December, and January (of Year 2) are forecasted to be as follows: November: $400,000 December: $600,000 January: $200,000 70% of sales are credit sales; the remaining sales are cash sales. Of these credit sales, 5% are collected during the month of sale, 25% in the following month, 65% in the second following month, and 5% are never collected. Total sales (cash and credit): September, Year 1: $100,000 October, Year 1: $150,000 What is the forecasted amount of total cash collections in January? $294,000 $323,000 $347,000 $354,000 $354,000 If a cost analysis is based on differential costs, which type of costs will differ among the alternatives presented? Variable costs Future costs Sunk costs Fixed costs Future Costs A company manufactures computers and provides the following cost information for the production of one computer: Direct materials $46 Direct labor 64 Variable manufacturing overhead 48 Fixed manufacturing overhead 34 Total cost per unit 192 The $34 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed. The company has received a special order for 500 computers at a price of $175 per unit. By how much will overall company net income change if this order is accepted? It will increase by $8,500. It will decrease by $8,500. It will increase by $22,500. It will decrease by $22,500. It will increase by $8,500.