WGU D101: Managerial and Cost Accounting |OA |Objective
Assessment Exam
Correct
Incorrect
1 of 48
Term
It is November 1 of Year 1. Sales for a decorative supplies company for
November, December, and January (of Year 2) are forecasted to be as
follows:
November: $200,000
December: $800,000
January: $200,000
On average, the cost of goods sold is 70% of sales. During this period,
the company expects inventory levels to remain constant. This means
that inventory purchases are expected to equal the amount of cost of
goods sold.
100% of purchases are on credit. Of the credit purchases, 5% are paid
during the month of the purchase, 65% in the month following the
purchase, and 30% in the second month following the purchase.
Sales for September and October of Year 1 were $100,000 and
$150,000, respectively.
,January?
, 2 of 48
Term
Cadallia Company harvests and processes almonds into three
products: candied almonds, almond butter, and almond flour. The joint
production cost for harvesting one ton of almonds is $500. The selling
price of the Cadallia's three products are as follows:
Candied almonds: $1.00 per pound
Almond butter: $5.00 per 40-pound bag
Almond flour: $14 per ton
A new investor in Cadallia Company thinks that the company is losing
money whenever it sells almond flour and has called for dropping this
product from the product line. The controller of Cadallia Company has
calculated that the extra processing cost (beyond the joint production
costs) for almond flour is $18 per ton. Cadallia Company is currently
selling 1,000 tons of almond flour per year.
How much would Cadallia Company's net income change if it were to
stop selling almond flour?
Give this one a try later!
It would increase by $4,000. It would increase by $200.
It will decrease by $3,000. It will increase by $8,500.
Don't know?
3 of 48
, Term
Data for Balartistry Company are as follows:
Units
Percent Completed
Direct Materials Costs
Conversion Costs
Beginning work in process
10,000
90%
$10,000
$30,000
Units started and completed during the period
50,000
Costs added this period
$110,000
$200,000
Ending work in process
20,000
30%
Units completed and transferred during the period
60,000
Materials are added at the beginning of the production process.
Conversion costs are added uniformly throughout the production
Assessment Exam
Correct
Incorrect
1 of 48
Term
It is November 1 of Year 1. Sales for a decorative supplies company for
November, December, and January (of Year 2) are forecasted to be as
follows:
November: $200,000
December: $800,000
January: $200,000
On average, the cost of goods sold is 70% of sales. During this period,
the company expects inventory levels to remain constant. This means
that inventory purchases are expected to equal the amount of cost of
goods sold.
100% of purchases are on credit. Of the credit purchases, 5% are paid
during the month of the purchase, 65% in the month following the
purchase, and 30% in the second month following the purchase.
Sales for September and October of Year 1 were $100,000 and
$150,000, respectively.
,January?
, 2 of 48
Term
Cadallia Company harvests and processes almonds into three
products: candied almonds, almond butter, and almond flour. The joint
production cost for harvesting one ton of almonds is $500. The selling
price of the Cadallia's three products are as follows:
Candied almonds: $1.00 per pound
Almond butter: $5.00 per 40-pound bag
Almond flour: $14 per ton
A new investor in Cadallia Company thinks that the company is losing
money whenever it sells almond flour and has called for dropping this
product from the product line. The controller of Cadallia Company has
calculated that the extra processing cost (beyond the joint production
costs) for almond flour is $18 per ton. Cadallia Company is currently
selling 1,000 tons of almond flour per year.
How much would Cadallia Company's net income change if it were to
stop selling almond flour?
Give this one a try later!
It would increase by $4,000. It would increase by $200.
It will decrease by $3,000. It will increase by $8,500.
Don't know?
3 of 48
, Term
Data for Balartistry Company are as follows:
Units
Percent Completed
Direct Materials Costs
Conversion Costs
Beginning work in process
10,000
90%
$10,000
$30,000
Units started and completed during the period
50,000
Costs added this period
$110,000
$200,000
Ending work in process
20,000
30%
Units completed and transferred during the period
60,000
Materials are added at the beginning of the production process.
Conversion costs are added uniformly throughout the production
