WGU C253 OA ADVANCED MANAGERIAL
ACCOUNTING FINAL EXAM PRACTICE 2024
/QUESTIONS WITH CORRECT DETAILED ANSWERS
AND ELABORATIONS/A+
1. Which type of business should use process costing?
a) Accounting firm
b) Dentist office
c) Oil refinery
d) Custom home builder
2. A company had 1,000 units in beginning work in process, 80% complete for materials and 30%
complete for conversion. During the period,10,000 units were started. At the end of the month, 700
units were in ending work in process: 70% complete for materials, and 40% complete for conversion.
What is the equivalent units for conversion using the first-in, first-out (FIFO) method?
Equivalent units = (1,000*.70)+(9,300*1)+(700*.40) = 10,280 units
3. A company has a contract to manufacture 15 units of Job A, and it is the only job in production at this
time. It will take 10 machine hours to complete Job A.
The company has $200 of beginning materials inventory and purchases $1,000 of additional materials.
The direct labor cost is $500, and the ending material inventory will be $400.
What is the per-unit cost of this job if overhead is allocated based on $25 per machine hour?
Cost/unit = ((200+1,000-400)+(500)+(10*25))/15 = 103.33
, 4. A company uses the first-in, first-out (FIFO) method for its process costing. The following data is for
February operations:
Units in Beginning Inventory 800
Units Started into Production 12,000
Units in Ending Inventory 300
Units Transferred to the Next Department 12,500
Material Conversion
Percentage Completion of Beginning Inventory 80% 30%
Percentage Completion of Ending Inventory 90% 40%
Beginning inventory consisted of $1,200 of material costs and $800 of conversion costs. A total of
$72,000 was added during the month of February, which consisted of $31,000 of materials and
$41,000 of conversion costs.
What is the cost assigned to ending work in process inventory?
Equivalent units
Materials Conversion
Beg Inventory 160 560
Started and completed 11700 11,700
End Inventory 270 120
Equivalent units 12,130 12,380
Costs added during period $31,000 41,000
Cost/eq. unit 31,000/12,130 41,000/12,380
=2.56 =3.31
Cost of End Inventory = (270*2.56)691.20+(120*3.31) 397.2= 1,088.40
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ACCOUNTING FINAL EXAM PRACTICE 2024
/QUESTIONS WITH CORRECT DETAILED ANSWERS
AND ELABORATIONS/A+
1. Which type of business should use process costing?
a) Accounting firm
b) Dentist office
c) Oil refinery
d) Custom home builder
2. A company had 1,000 units in beginning work in process, 80% complete for materials and 30%
complete for conversion. During the period,10,000 units were started. At the end of the month, 700
units were in ending work in process: 70% complete for materials, and 40% complete for conversion.
What is the equivalent units for conversion using the first-in, first-out (FIFO) method?
Equivalent units = (1,000*.70)+(9,300*1)+(700*.40) = 10,280 units
3. A company has a contract to manufacture 15 units of Job A, and it is the only job in production at this
time. It will take 10 machine hours to complete Job A.
The company has $200 of beginning materials inventory and purchases $1,000 of additional materials.
The direct labor cost is $500, and the ending material inventory will be $400.
What is the per-unit cost of this job if overhead is allocated based on $25 per machine hour?
Cost/unit = ((200+1,000-400)+(500)+(10*25))/15 = 103.33
, 4. A company uses the first-in, first-out (FIFO) method for its process costing. The following data is for
February operations:
Units in Beginning Inventory 800
Units Started into Production 12,000
Units in Ending Inventory 300
Units Transferred to the Next Department 12,500
Material Conversion
Percentage Completion of Beginning Inventory 80% 30%
Percentage Completion of Ending Inventory 90% 40%
Beginning inventory consisted of $1,200 of material costs and $800 of conversion costs. A total of
$72,000 was added during the month of February, which consisted of $31,000 of materials and
$41,000 of conversion costs.
What is the cost assigned to ending work in process inventory?
Equivalent units
Materials Conversion
Beg Inventory 160 560
Started and completed 11700 11,700
End Inventory 270 120
Equivalent units 12,130 12,380
Costs added during period $31,000 41,000
Cost/eq. unit 31,000/12,130 41,000/12,380
=2.56 =3.31
Cost of End Inventory = (270*2.56)691.20+(120*3.31) 397.2= 1,088.40
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