WGU D101
WGU D101 Cost and Managerial Accounting - Quizlet
Questions with Correct Answers and Rationales | 2026 Update |
100% Correct
Gradegurus
➢109 carefully selected questions covering the full scope
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,WGU D101 Cost and Managerial Accounting - Quizlet
Questions with Correct Answers and Rationales
Question 1
When determining the cost per unit of units produced in a processing center, which
statement is true?
a. Separate costs are not calculated per unit for direct materials or conversion costs for
either beginning work-in-process inventory or current period costs.
b. Separate costs are only calculated per unit for direct materials and conversion costs
for the current period costs.
c. Separate costs are only calculated per unit for direct materials and conversion costs
for the beginning work-in-process inventory.
d. Separate costs are calculated per unit for direct materials and conversion costs for
both beginning work-in-process inventory and current period costs.
Correct Answer: d
Rationale: Separate unit costs are calculated for direct materials and conversion costs
for both beginning work-in-process inventory and current period costs. This allows for
proper cost tracking and valuation of inventory at different stages of completion.
,Question 2
What does identifying the overhead costs associated with a particular production cost
pool require?
a. Analyzing how indirect production personnel involved in a production process spend
their time during their breaks during the workday
b. Analyzing how indirect production personnel involved in a production process spend
their time during the workday
c. Analyzing how the CEO and the CFO spend their time during the workday
d. Analyzing how sales and marketing personnel spend their time during the workday
Correct Answer: b
Rationale: Identifying how indirect production personnel involved in a production
process spend their time during the workday helps a company identify the overhead
costs associated with a particular production cost pool. This analysis helps allocate
overhead more accurately.
Question 3
When manufacturing overhead is underapplied, which entry is included in closing the
manufacturing overhead account?
a. A debit to cost of goods sold
b. A debit to finished goods inventory
c. A debit to work-in-process inventory
d. A debit to manufacturing overhead
Correct Answer: a
Rationale: When manufacturing overhead is underapplied, the amount is debited to cost
of goods sold (and credited to manufacturing overhead) to close the account.
, Underapplied overhead means actual overhead exceeded applied overhead.
Question 4
Using a traditional overhead allocation method, what is a common measure of activity?
a. Amount spent on research and development
b. CEO salary
c. Forecasted sales increase
d. Direct labor hours
Correct Answer: d
Rationale: With a traditional overhead allocation method, all overhead is allocated based
on one common measure of activity, such as direct labor hours or machine hours. This
approach is simple because direct labor hours are routinely tracked.
Question 5
A company has a warehouse supervisor whose annual costs to the company are
$40,000. The warehouse is used to receive and store packaged goods in boxes. Once a
customer's order is received, the boxes are removed and shipped. The company is
trying to determine what the best way is to allocate the warehouse supervisor's annual
costs to each customer order that is shipped during the year.
What is the appropriate cost driver to allocate the warehouse supervisor's annual costs
to each customer order?
a. The number of boxes received in the warehouse throughout the year
b. The number of boxes in the warehouse at the beginning of the year
c. The number of boxes shipped to customers throughout the year
WGU D101 Cost and Managerial Accounting - Quizlet
Questions with Correct Answers and Rationales | 2026 Update |
100% Correct
Gradegurus
➢109 carefully selected questions covering the full scope
➢
➢
➢
,WGU D101 Cost and Managerial Accounting - Quizlet
Questions with Correct Answers and Rationales
Question 1
When determining the cost per unit of units produced in a processing center, which
statement is true?
a. Separate costs are not calculated per unit for direct materials or conversion costs for
either beginning work-in-process inventory or current period costs.
b. Separate costs are only calculated per unit for direct materials and conversion costs
for the current period costs.
c. Separate costs are only calculated per unit for direct materials and conversion costs
for the beginning work-in-process inventory.
d. Separate costs are calculated per unit for direct materials and conversion costs for
both beginning work-in-process inventory and current period costs.
Correct Answer: d
Rationale: Separate unit costs are calculated for direct materials and conversion costs
for both beginning work-in-process inventory and current period costs. This allows for
proper cost tracking and valuation of inventory at different stages of completion.
,Question 2
What does identifying the overhead costs associated with a particular production cost
pool require?
a. Analyzing how indirect production personnel involved in a production process spend
their time during their breaks during the workday
b. Analyzing how indirect production personnel involved in a production process spend
their time during the workday
c. Analyzing how the CEO and the CFO spend their time during the workday
d. Analyzing how sales and marketing personnel spend their time during the workday
Correct Answer: b
Rationale: Identifying how indirect production personnel involved in a production
process spend their time during the workday helps a company identify the overhead
costs associated with a particular production cost pool. This analysis helps allocate
overhead more accurately.
Question 3
When manufacturing overhead is underapplied, which entry is included in closing the
manufacturing overhead account?
a. A debit to cost of goods sold
b. A debit to finished goods inventory
c. A debit to work-in-process inventory
d. A debit to manufacturing overhead
Correct Answer: a
Rationale: When manufacturing overhead is underapplied, the amount is debited to cost
of goods sold (and credited to manufacturing overhead) to close the account.
, Underapplied overhead means actual overhead exceeded applied overhead.
Question 4
Using a traditional overhead allocation method, what is a common measure of activity?
a. Amount spent on research and development
b. CEO salary
c. Forecasted sales increase
d. Direct labor hours
Correct Answer: d
Rationale: With a traditional overhead allocation method, all overhead is allocated based
on one common measure of activity, such as direct labor hours or machine hours. This
approach is simple because direct labor hours are routinely tracked.
Question 5
A company has a warehouse supervisor whose annual costs to the company are
$40,000. The warehouse is used to receive and store packaged goods in boxes. Once a
customer's order is received, the boxes are removed and shipped. The company is
trying to determine what the best way is to allocate the warehouse supervisor's annual
costs to each customer order that is shipped during the year.
What is the appropriate cost driver to allocate the warehouse supervisor's annual costs
to each customer order?
a. The number of boxes received in the warehouse throughout the year
b. The number of boxes in the warehouse at the beginning of the year
c. The number of boxes shipped to customers throughout the year
