WGU PA: Managerial Accounting
Study Guide Exam and Actual
Answers.
Which feature of managerial accounting improves a company's ability to plan and control
operations? - Answer It generates detailed information on product cost.
Which statement describes period costs? - Answer They flow directly to the current income
statement as expenses.
A company has the following costs associated with a job:
Direct materials: $400
Direct labor: $450
Work in process: $950
Revenue from job: $1,450
What is the amount of overhead applied to this job? - Answer $100
Management wants to assess how many units must be sold to earn a profit.
The most useful analysis will separate costs into which categories? - Answer Fixed and
variable
A manufacturing company budgeted for $1,240,000 in manufacturing overhead and expected
400,000 direct labor hours. Actual overhead was $1,200,000, and actual direct labor hours were
390,000.
Was manufacturing overhead over- or underapplied and by how much? - Answer
Overapplied by $9,000
(($1,240,000/400,000) - ($1,200,000/390,000)) * 390,000
Cost of goods manufactured equals $87,000 for the year. Finished goods inventory is $10,000 at
the beginning of the year and $4,000 at the end of the year. Beginning and ending work in
process are $4,000 and $5,000, respectively.
How much is cost of goods sold for the year? - Answer $93,000
, cost of goods manuf. + finished goods inventory (beg.) - finished goods inventory (end)
The following information relates to a company's production activities for the month of
October:
(est and actual amounts)
Cost of direct labor
Cost of manufacturing overhead
Direct labor hours
Using direct labor hours as the activity base, what is the predetermined overhead rate? -
Answer $24.44 per direct labor hour
est. cost of manuf. overhead/direct labor hours
The following amounts were reported by a company before adjusting its overapplied
manufacturing overhead of $48,000:
Cost of goods sold $730,000
Applied overhead $368,000
Actual overhead $320,000
What is the adjusted cost of goods sold for the year? - Answer $682,000
$730,000 - $48,000
cost of goods sold - overapplied manufacturing overhead
The manufacturing operations of a company had the following balances for the year:
(beg/end balance)
Raw materials ($84,000/$91,000)
Work in process ($45,000/$59,000)
Finished goods ($28,000/$23,000)
Study Guide Exam and Actual
Answers.
Which feature of managerial accounting improves a company's ability to plan and control
operations? - Answer It generates detailed information on product cost.
Which statement describes period costs? - Answer They flow directly to the current income
statement as expenses.
A company has the following costs associated with a job:
Direct materials: $400
Direct labor: $450
Work in process: $950
Revenue from job: $1,450
What is the amount of overhead applied to this job? - Answer $100
Management wants to assess how many units must be sold to earn a profit.
The most useful analysis will separate costs into which categories? - Answer Fixed and
variable
A manufacturing company budgeted for $1,240,000 in manufacturing overhead and expected
400,000 direct labor hours. Actual overhead was $1,200,000, and actual direct labor hours were
390,000.
Was manufacturing overhead over- or underapplied and by how much? - Answer
Overapplied by $9,000
(($1,240,000/400,000) - ($1,200,000/390,000)) * 390,000
Cost of goods manufactured equals $87,000 for the year. Finished goods inventory is $10,000 at
the beginning of the year and $4,000 at the end of the year. Beginning and ending work in
process are $4,000 and $5,000, respectively.
How much is cost of goods sold for the year? - Answer $93,000
, cost of goods manuf. + finished goods inventory (beg.) - finished goods inventory (end)
The following information relates to a company's production activities for the month of
October:
(est and actual amounts)
Cost of direct labor
Cost of manufacturing overhead
Direct labor hours
Using direct labor hours as the activity base, what is the predetermined overhead rate? -
Answer $24.44 per direct labor hour
est. cost of manuf. overhead/direct labor hours
The following amounts were reported by a company before adjusting its overapplied
manufacturing overhead of $48,000:
Cost of goods sold $730,000
Applied overhead $368,000
Actual overhead $320,000
What is the adjusted cost of goods sold for the year? - Answer $682,000
$730,000 - $48,000
cost of goods sold - overapplied manufacturing overhead
The manufacturing operations of a company had the following balances for the year:
(beg/end balance)
Raw materials ($84,000/$91,000)
Work in process ($45,000/$59,000)
Finished goods ($28,000/$23,000)
