WGU D101: Quiz for Module 1 - Cost and Managerial
Accounting
You are working for a product manufacturer whose bookkeeper is currently recording all costs and
expenses incurred in manufacturing directly to generic accounts in the general ledger instead of
recording such costs by product. The manufacturer would like to be able to trace costs by product in the
future.
Which costs can be specifically traced to a product and then recorded by the bookkeeper if the
manufacturer decides to invest in and use a job order costing system as a product costing tool? - correct
answer ✔✔Direct materials and direct labor
Correct! In a job order costing system, direct materials and direct labor costs can be specifically traced to
a product or project.
You are working for a product manufacturer whose bookkeeper is currently recording all costs and
expenses directly to generic accounts in the general ledger instead of by product. The manufacturer
would like to be able to trace costs by product in the future and implement job order costing.
What are the three steps required to implement a job order costing system? - correct answer
✔✔Identify the product or project, trace direct costs, and allocate overhead
Correct! The three steps in a job order costing system are identify the product or project, trace direct
costs, and allocate overhead.
Adam Simpson is the newly hired controller for Endothon Company. Adam was hired to fix Endothon's
job order costing system. One of the first things Adam Simpson noticed was that even the simplest items
were not being recorded correctly. For example, the flow of materials cost through the accounting
system seemed to be almost random with no correlation between the accounting flow of costs and the
actual flow of costs in the production facility. This is the first thing that Adam Simpson wants to fix.
What is the correct sequence for the flow of material costs through the production process? - correct
answer ✔✔Raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods
sold
Accounting
You are working for a product manufacturer whose bookkeeper is currently recording all costs and
expenses incurred in manufacturing directly to generic accounts in the general ledger instead of
recording such costs by product. The manufacturer would like to be able to trace costs by product in the
future.
Which costs can be specifically traced to a product and then recorded by the bookkeeper if the
manufacturer decides to invest in and use a job order costing system as a product costing tool? - correct
answer ✔✔Direct materials and direct labor
Correct! In a job order costing system, direct materials and direct labor costs can be specifically traced to
a product or project.
You are working for a product manufacturer whose bookkeeper is currently recording all costs and
expenses directly to generic accounts in the general ledger instead of by product. The manufacturer
would like to be able to trace costs by product in the future and implement job order costing.
What are the three steps required to implement a job order costing system? - correct answer
✔✔Identify the product or project, trace direct costs, and allocate overhead
Correct! The three steps in a job order costing system are identify the product or project, trace direct
costs, and allocate overhead.
Adam Simpson is the newly hired controller for Endothon Company. Adam was hired to fix Endothon's
job order costing system. One of the first things Adam Simpson noticed was that even the simplest items
were not being recorded correctly. For example, the flow of materials cost through the accounting
system seemed to be almost random with no correlation between the accounting flow of costs and the
actual flow of costs in the production facility. This is the first thing that Adam Simpson wants to fix.
What is the correct sequence for the flow of material costs through the production process? - correct
answer ✔✔Raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods
sold
