WGU D101 ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ Cost of Goods Sold (COGS).
Answer: = cost of goods manufactured + beginning finished goods inventory
- ending finished goods inventory +/- (-overhead if overapplied;+ overhead
if underapplied) = COGS
◍ Product-line Activities.
Answer: Activities that take place to support a product line, regardless of the
number of batches or individual units produced
◍ Raw Materials Inventory.
Answer: Inventory of raw materials that have not yet begun the production
process
◍ Which cost item does the cost of goods manufactured schedule begin
with?The cost of materials purchased during the period.The cost of direct
labor incurred during the period.The costs related to manufacturing
overhead incurred during the period.The cost of materials placed into
production..
Answer: The cost of materials placed into production.
◍ Which statement is true?a. Having accurate product or service cost
information is important for both price takers and price makers.b. Having
accurate product or service cost information is important for price takers,
but not price makers.c. Having accurate produce or service cost information
is not important for either price takers or price makers.d. Having accurate
product or service cost information is important for price makers, but not
price takers..
Answer: a.
◍ The most common way to eliminate overapplied and underapplied
, manufacturing overhead is to record the amount to cost of goods sold.What
is an alternative way to eliminate these overapplications or
underapplications of manufacturing overhead?a. Allocate overapplied or
underapplied manufacturing overhead to finished goods inventory onlyb.
Allocate overapplied or underapplied manufacturing overhead to
work-in-process inventory, finished goods inventory, and cost of goods sold
on the basis of ending balances in these accountsc. Allocate overapplied or
underapplied manufacturing overhead to work-in-process inventory onlyd.
Allocate overapplied or underapplied manufacturing overhead to
manufacturing overhead payable.
Answer: b.
◍ Data for an auto company for the year are as follows:Total manufacturing
costs$400,000Finished goods inventory, beginning
balance240,000Work-in-process inventory, ending
balance100,000Overapplied manufacturing overhead30,000Finished goods
inventory, ending balance200,000Work-in-process inventory, beginning
balance115,000What is the auto company's computed cost of goods
manufactured?$445,000$415,000$385,000$355,000.
Answer: $415,000
◍ In a CVP graph, what is represented by the vertical-axis intercept of the total
cost line?
A. Total variable costs
B. Price per unit
C. Variable cost per unit
D. Total fixed cost.
Answer: D. Correct! In a CVP graph, the vertical axis intercept of the total
cost line is the total fixed cost. At this point, there are no variable costs
because production is zero and variable costs always vary by units
produced.
◍ Plairtrack Company manufactures lamps. Sparkit, a large retail
merchandiser, wants to buy 250,000 lamps from Plairtrack Company for
, $11 each.Plairtrack Company normally sells 420,000 lamps a year at $16
each; its production capacity is a total of 600,000 units a year. Below is the
production cost information for the lamps:Variable production costs per unit
$6Fixed manufacturing overhead per unit $7Total production cost per unit
$13Total fixed manufacturing overhead costs will not change regardless of
whether the special order is accepted. Sparkit has indicated that the
company is not interested in signing a contract for fewer than 250,000
lamps.By how much will Plairtrack Company's net income change if this
special order is accepted?It will increase by $550,000.It will decrease by
$550,000.It will increase by $1,250,000.It will decrease by $1,250,000..
Answer: It will increase by $550,000.
◍ Assume a production process using process costing starts with a certain
number of units in beginning inventory that are partially completed, a
certain number of units are started and completed during the period, and the
ending inventory at the end of the period is partially complete.How would
you determine the equivalent units of production in this situation for the
period?a. You would add the work required to complete the units in
beginning inventory plus the degree of completion of the ending inventory
units.b. You would add the work required to start and complete the units
started during the period plus the degree of completion of the ending
inventory units.c. You would add the work required to complete the units in
beginning inventory to the number of units started and completed during the
period to the degree of completion of the ending inventory units.d. You
would add the work required to complete the units in beginning inventory
plus the number of units started and completed during the period..
Answer: c. Correct! To determine the equivalent units of production in this
situation in this period, you would add the work required to complete the
units in beginning inventory plus the number of units started and completed
during the period plus the degree of completion of the ending inventory
units.
◍ Data for an art supplies company for the year are as follows:Finished goods
inventory, beginning balance$300,000Work-in-process inventory, ending
, balance215,000Underapplied manufacturing overhead40,000Finished goods
inventory, ending balance250,000Work-in-process inventory, beginning
balance200,000Cost of goods manufactured685,000What is the company's
computed adjusted cost of goods sold?$630,000$710,000$715,000$775,000.
Answer: $775,000
◍ Which is an advantage of using ABC overhead costing over traditional
overhead costing?a. ABC allocates manufacturing overhead more accurately
to products and processes that use the various activities.b. The collection
and preparation of ABC cost data is less time consuming than traditional
overhead allocation.c. The collection of ABC costing data is less expensive
than traditional overhead allocation.d. ABC is more useful than traditional
overhead costing when all different overhead items can be accurately
allocated using the same cost driver..
Answer: a. Correct! A key advantage of ABC costing is that even though it
may take more time and cost more, it always allocates manufacturing
overhead more accurately to products and processes that use the activity.
◍ Mixed Costs.
Answer: Costs that contain both variable and fixed costs components
◍ Which is a true statement regarding process costing?a. Process costing
includes only direct materials and direct labor costs and excludes
manufacturing overhead costs when computing the cost of finished goods.b.
The focus of the cost computations in process costing is on the unique job
being worked on.c. Process costing assigns costs equally to each unit
produced during a period.d. In process costing, even though manufacturing
companies can specifically identify costs for each product being produced,
they find it easier to calculate the average cost of all products..
Answer: c.
◍ Relevant Range.
Answer: The range of operating level, or volume of activity, over which the
relationship between total costs (variable plus fixed) and activity level is
approximately linear
QUESTIONS WITH ANSWERS GRADED A+
◍ Cost of Goods Sold (COGS).
Answer: = cost of goods manufactured + beginning finished goods inventory
- ending finished goods inventory +/- (-overhead if overapplied;+ overhead
if underapplied) = COGS
◍ Product-line Activities.
Answer: Activities that take place to support a product line, regardless of the
number of batches or individual units produced
◍ Raw Materials Inventory.
Answer: Inventory of raw materials that have not yet begun the production
process
◍ Which cost item does the cost of goods manufactured schedule begin
with?The cost of materials purchased during the period.The cost of direct
labor incurred during the period.The costs related to manufacturing
overhead incurred during the period.The cost of materials placed into
production..
Answer: The cost of materials placed into production.
◍ Which statement is true?a. Having accurate product or service cost
information is important for both price takers and price makers.b. Having
accurate product or service cost information is important for price takers,
but not price makers.c. Having accurate produce or service cost information
is not important for either price takers or price makers.d. Having accurate
product or service cost information is important for price makers, but not
price takers..
Answer: a.
◍ The most common way to eliminate overapplied and underapplied
, manufacturing overhead is to record the amount to cost of goods sold.What
is an alternative way to eliminate these overapplications or
underapplications of manufacturing overhead?a. Allocate overapplied or
underapplied manufacturing overhead to finished goods inventory onlyb.
Allocate overapplied or underapplied manufacturing overhead to
work-in-process inventory, finished goods inventory, and cost of goods sold
on the basis of ending balances in these accountsc. Allocate overapplied or
underapplied manufacturing overhead to work-in-process inventory onlyd.
Allocate overapplied or underapplied manufacturing overhead to
manufacturing overhead payable.
Answer: b.
◍ Data for an auto company for the year are as follows:Total manufacturing
costs$400,000Finished goods inventory, beginning
balance240,000Work-in-process inventory, ending
balance100,000Overapplied manufacturing overhead30,000Finished goods
inventory, ending balance200,000Work-in-process inventory, beginning
balance115,000What is the auto company's computed cost of goods
manufactured?$445,000$415,000$385,000$355,000.
Answer: $415,000
◍ In a CVP graph, what is represented by the vertical-axis intercept of the total
cost line?
A. Total variable costs
B. Price per unit
C. Variable cost per unit
D. Total fixed cost.
Answer: D. Correct! In a CVP graph, the vertical axis intercept of the total
cost line is the total fixed cost. At this point, there are no variable costs
because production is zero and variable costs always vary by units
produced.
◍ Plairtrack Company manufactures lamps. Sparkit, a large retail
merchandiser, wants to buy 250,000 lamps from Plairtrack Company for
, $11 each.Plairtrack Company normally sells 420,000 lamps a year at $16
each; its production capacity is a total of 600,000 units a year. Below is the
production cost information for the lamps:Variable production costs per unit
$6Fixed manufacturing overhead per unit $7Total production cost per unit
$13Total fixed manufacturing overhead costs will not change regardless of
whether the special order is accepted. Sparkit has indicated that the
company is not interested in signing a contract for fewer than 250,000
lamps.By how much will Plairtrack Company's net income change if this
special order is accepted?It will increase by $550,000.It will decrease by
$550,000.It will increase by $1,250,000.It will decrease by $1,250,000..
Answer: It will increase by $550,000.
◍ Assume a production process using process costing starts with a certain
number of units in beginning inventory that are partially completed, a
certain number of units are started and completed during the period, and the
ending inventory at the end of the period is partially complete.How would
you determine the equivalent units of production in this situation for the
period?a. You would add the work required to complete the units in
beginning inventory plus the degree of completion of the ending inventory
units.b. You would add the work required to start and complete the units
started during the period plus the degree of completion of the ending
inventory units.c. You would add the work required to complete the units in
beginning inventory to the number of units started and completed during the
period to the degree of completion of the ending inventory units.d. You
would add the work required to complete the units in beginning inventory
plus the number of units started and completed during the period..
Answer: c. Correct! To determine the equivalent units of production in this
situation in this period, you would add the work required to complete the
units in beginning inventory plus the number of units started and completed
during the period plus the degree of completion of the ending inventory
units.
◍ Data for an art supplies company for the year are as follows:Finished goods
inventory, beginning balance$300,000Work-in-process inventory, ending
, balance215,000Underapplied manufacturing overhead40,000Finished goods
inventory, ending balance250,000Work-in-process inventory, beginning
balance200,000Cost of goods manufactured685,000What is the company's
computed adjusted cost of goods sold?$630,000$710,000$715,000$775,000.
Answer: $775,000
◍ Which is an advantage of using ABC overhead costing over traditional
overhead costing?a. ABC allocates manufacturing overhead more accurately
to products and processes that use the various activities.b. The collection
and preparation of ABC cost data is less time consuming than traditional
overhead allocation.c. The collection of ABC costing data is less expensive
than traditional overhead allocation.d. ABC is more useful than traditional
overhead costing when all different overhead items can be accurately
allocated using the same cost driver..
Answer: a. Correct! A key advantage of ABC costing is that even though it
may take more time and cost more, it always allocates manufacturing
overhead more accurately to products and processes that use the activity.
◍ Mixed Costs.
Answer: Costs that contain both variable and fixed costs components
◍ Which is a true statement regarding process costing?a. Process costing
includes only direct materials and direct labor costs and excludes
manufacturing overhead costs when computing the cost of finished goods.b.
The focus of the cost computations in process costing is on the unique job
being worked on.c. Process costing assigns costs equally to each unit
produced during a period.d. In process costing, even though manufacturing
companies can specifically identify costs for each product being produced,
they find it easier to calculate the average cost of all products..
Answer: c.
◍ Relevant Range.
Answer: The range of operating level, or volume of activity, over which the
relationship between total costs (variable plus fixed) and activity level is
approximately linear
