WGU D101 FINAL TEST 2026 QUESTIONS
WITH CORRECT ANSWERS GRADED A+
◍ Debit work-in-process inventory.
Answer: What is the correct debit in a journal entry to record the allocation
of manufacturing overhead to production?Debit finished goods
inventoryDebit work-in-process inventoryDebit manufacturing
overheadDebit cost of goods sold
◍ Total Manufacturing Cost.
Answer: = Direct Materials + Direct Labor + Applied Overhead
◍ A method of product costing in which costs are accumulated and tracked by
process and averaged over all products made during the period.
Answer: What is process costing?A method of product costing in which all
costs are accumulated and assigned to selling, general, and administrative
expensesA method of product costing in which costs are accumulated and
tracked by process and averaged over all products made during the periodA
method of product costing in which all costs are accumulated and assigned
to manufacturing overheadA method of product costing in which costs are
accumulated and tracked by specific jobs or products
◍ Materials Price Variance (MPV).
Answer: = (Actual Price - Standard Price) × Actual Quantity Purchased
◍ Cost of Goods Sold (COGS).
Answer: = COGM + Beginning Finished Goods Inventory - Ending Finished
Goods Inventory
◍ Labor Efficiency Variance (LEV).
Answer: = (Actual Hours Worked - Standard Hours Allowed) × Standard
Rate
,◍ It is appropriate when the work performed on each product that goes
through various work centers is the same..
Answer: What is true about process costing?It is appropriate when the work
performed on each product that goes through various work centers is the
same.It is always more accurate than job order costing.It allows specific
product costs to be applied to each product that is made differently.It can
only be used in manufacturing firms and not in-service firms.
◍ Variable Overhead Efficiency Variance.
Answer: = (Actual Hours - Standard Hours Allowed) × Standard Variable
Overhead Rate
◍ Break-Even Point (in Sales Dollars).
Answer: = Fixed Costs / Contribution Margin Ratio
◍ Contribution Margin per Unit.
Answer: = Selling Price per Unit - Variable Cost per Unit
◍ Finished goods inventory.
Answer: When manufacturing is completed on specific products, their costs
are transferred to which account?Direct materialsCost of goods soldFinished
goods inventoryWork-in-process inventory
◍ Production Budget.
Answer: = Expected Sales Units + Desired Ending Inventory - Beginning
Inventory
◍ Cash Disbursements for Purchases.
Answer: = Payments for Current Purchases + Payments for Prior Period
Purchases (based on payment pattern)
◍ Cost of Goods Manufactured (COGM).
Answer: = Total Manufacturing Cost + Beginning WIP Inventory - Ending
WIP Inventory
◍ Total Manufacturing Costs (Direct Labor, Direct Materials, & Applied
Overhead)+Beginning Work In Process-Ending Work in Process.
, Answer: Computation of COGS Manufactured
◍ Degree of Operating Leverage.
Answer: = Contribution Margin / Operating Income
◍ Variable Overhead Spending Variance.
Answer: = (Actual Variable Overhead Rate - Standard Variable Overhead
Rate) × Actual Hours
◍ Overhead Applied.
Answer: = POHR × Actual Activity Base
◍ Manufacturing overhead was overapplied by $700 during the period..
Answer: Whole Pine Inc. has a manufacturing overhead account that has
debits totalling $101,300 and credits totalling $102,000. Whole Pine Inc.'s
accountant is trying to understand why the debit and credit balances in the
account are not equal at the end of the period.What is the explanation for the
difference?Manufacturing overhead was underapplied by $700 during the
period.Manufacturing overhead was overapplied by $700 during the
period.The total amount of overhead applied for the period was
$101,300.The total amount of actual manufacturing overhead costs for the
period was $102,000.
◍ $989,000.
Answer: Here are data for Ball Company for the year:Work-in-process
inventory, ending balance130,000Finished goods inventory, beginning
balance100,000Direct materials purchased355,000Direct labor
costs370,000Actual manufacturing overhead costs279,000Finished goods
inventory, ending balance120,000Direct materials inventory, ending
balance85,000Work-in-process inventory, beginning balance125,000Direct
materials inventory, beginning balance70,000Applied manufacturing
overhead costs284,000What is the total cost of goods
manufactured?$989,000$984,000$994,000$1,004,000
◍ Margin of Safety.
Answer: = Actual Sales - Break-Even Sales
WITH CORRECT ANSWERS GRADED A+
◍ Debit work-in-process inventory.
Answer: What is the correct debit in a journal entry to record the allocation
of manufacturing overhead to production?Debit finished goods
inventoryDebit work-in-process inventoryDebit manufacturing
overheadDebit cost of goods sold
◍ Total Manufacturing Cost.
Answer: = Direct Materials + Direct Labor + Applied Overhead
◍ A method of product costing in which costs are accumulated and tracked by
process and averaged over all products made during the period.
Answer: What is process costing?A method of product costing in which all
costs are accumulated and assigned to selling, general, and administrative
expensesA method of product costing in which costs are accumulated and
tracked by process and averaged over all products made during the periodA
method of product costing in which all costs are accumulated and assigned
to manufacturing overheadA method of product costing in which costs are
accumulated and tracked by specific jobs or products
◍ Materials Price Variance (MPV).
Answer: = (Actual Price - Standard Price) × Actual Quantity Purchased
◍ Cost of Goods Sold (COGS).
Answer: = COGM + Beginning Finished Goods Inventory - Ending Finished
Goods Inventory
◍ Labor Efficiency Variance (LEV).
Answer: = (Actual Hours Worked - Standard Hours Allowed) × Standard
Rate
,◍ It is appropriate when the work performed on each product that goes
through various work centers is the same..
Answer: What is true about process costing?It is appropriate when the work
performed on each product that goes through various work centers is the
same.It is always more accurate than job order costing.It allows specific
product costs to be applied to each product that is made differently.It can
only be used in manufacturing firms and not in-service firms.
◍ Variable Overhead Efficiency Variance.
Answer: = (Actual Hours - Standard Hours Allowed) × Standard Variable
Overhead Rate
◍ Break-Even Point (in Sales Dollars).
Answer: = Fixed Costs / Contribution Margin Ratio
◍ Contribution Margin per Unit.
Answer: = Selling Price per Unit - Variable Cost per Unit
◍ Finished goods inventory.
Answer: When manufacturing is completed on specific products, their costs
are transferred to which account?Direct materialsCost of goods soldFinished
goods inventoryWork-in-process inventory
◍ Production Budget.
Answer: = Expected Sales Units + Desired Ending Inventory - Beginning
Inventory
◍ Cash Disbursements for Purchases.
Answer: = Payments for Current Purchases + Payments for Prior Period
Purchases (based on payment pattern)
◍ Cost of Goods Manufactured (COGM).
Answer: = Total Manufacturing Cost + Beginning WIP Inventory - Ending
WIP Inventory
◍ Total Manufacturing Costs (Direct Labor, Direct Materials, & Applied
Overhead)+Beginning Work In Process-Ending Work in Process.
, Answer: Computation of COGS Manufactured
◍ Degree of Operating Leverage.
Answer: = Contribution Margin / Operating Income
◍ Variable Overhead Spending Variance.
Answer: = (Actual Variable Overhead Rate - Standard Variable Overhead
Rate) × Actual Hours
◍ Overhead Applied.
Answer: = POHR × Actual Activity Base
◍ Manufacturing overhead was overapplied by $700 during the period..
Answer: Whole Pine Inc. has a manufacturing overhead account that has
debits totalling $101,300 and credits totalling $102,000. Whole Pine Inc.'s
accountant is trying to understand why the debit and credit balances in the
account are not equal at the end of the period.What is the explanation for the
difference?Manufacturing overhead was underapplied by $700 during the
period.Manufacturing overhead was overapplied by $700 during the
period.The total amount of overhead applied for the period was
$101,300.The total amount of actual manufacturing overhead costs for the
period was $102,000.
◍ $989,000.
Answer: Here are data for Ball Company for the year:Work-in-process
inventory, ending balance130,000Finished goods inventory, beginning
balance100,000Direct materials purchased355,000Direct labor
costs370,000Actual manufacturing overhead costs279,000Finished goods
inventory, ending balance120,000Direct materials inventory, ending
balance85,000Work-in-process inventory, beginning balance125,000Direct
materials inventory, beginning balance70,000Applied manufacturing
overhead costs284,000What is the total cost of goods
manufactured?$989,000$984,000$994,000$1,004,000
◍ Margin of Safety.
Answer: = Actual Sales - Break-Even Sales
