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WGU D101 ACTUAL EXAM QUESTIONS
WITH 100% ACCURATE SOLUTIONS +
RATIONALES 2026 LATEST UPDATED
SOLUTIONS
Question 01
Which of the following should be included as manufacturing overhead
cost?
a) The wages of employees who work on production lines
b) The raw materials used in the finishing department
c) The direct materials used to make a product
d) The wages of factory custodians
View Answer
Answer: d) The wages of factory custodians
Explanation: The wages of factory custodians are considered part of
manufacturing overhead because they are indirect labor costs related to
production.
,Question 02
The glue and nails used in a manufacturing process should be included
in which cost category?
a) Administrative costs
b) Manufacturing overhead costs
c) Prepaid supplies
d) Direct materials costs
View Answer
Answer: b) Manufacturing overhead costs
Explanation: Glue and nails are considered indirect materials and are part
of manufacturing overhead costs.
Question 03
. How is the purchase of raw materials on open account recorded?
a) Debit to accounts payable
b) Credit to raw materials inventory
c) Credit to work-in-process inventory
d) Debit to raw materials inventory
View Answer
Answer: d) Debit to raw materials inventory
Explanation: A purchase of raw materials on account increases raw
materials inventory, which is recorded as a debit.
Question 04
Which journal entry is used to record payment of factory rent in cash?
a) Debit to finished goods inventory
b) Debit to cost of goods sold
c) Debit to work-in-process inventory
d) Debit to manufacturing overhead
View Answer
Answer: d) Debit to manufacturing overhead
Explanation: Payment for factory rent is recorded as manufacturing
overhead, which is an indirect cost of production.
Question 05
What is the manufacturing overhead rate that is applied to work-in-
process during manufacturing?
,a) An estimate based on expected overhead and machine/labor hours
b) The actual costs of manufacturing overhead components
c) An estimate based on actual costs divided by products made
d) The actual costs of manufacturing overhead divided by total products
View Answer
Answer: a) An estimate based on expected overhead and machine/labor
hours
Explanation: Manufacturing overhead is typically applied to work-in-
process using a predetermined overhead rate based on expected costs and
allocation factors like machine or labor hours.
Question 06
In a job order costing system, what does a debit to work-in-process
inventory and a credit to salaries and wages payable represent?
a) Recognizing total labor costs
b) Applying indirect labor costs to work-in-process inventory
c) Assigning direct labor costs to products being manufactured
d) Payment of salaries to factory employees
View Answer
Answer: c) Assigning direct labor costs to products being manufactured
Explanation: This journal entry reflects assigning direct labor costs to the
work-in-process inventory.
Question 07
In a job order costing system, what does a debit to manufacturing
overhead and a credit to salaries and wages payable represent?
a) Recording indirect labor costs to manufacturing overhead
b) Paying the salaries of indirect laborers
c) Recording direct labor costs
d) Paying direct laborers
View Answer
Answer: a) Recording indirect labor costs to manufacturing overhead
Explanation: Indirect labor costs (such as supervisors) are recorded as part
of manufacturing overhead.
Question 08
A company budgets manufacturing overhead at $500,000 and direct labor
hours at 20,000. What is the predetermined overhead rate?
, a) $36 per direct labor hour
b) $20 per direct labor hour
c) $25 per direct labor hour
d) $61 per direct labor hour
View Answer
Answer: c) $25 per direct labor hour
Explanation: The predetermined overhead rate is calculated as budgeted
overhead divided by budgeted direct labor hours ($500,,000 = $25).
Question 09
What is the correct order of steps for accounting for manufacturing
overhead?
a) Budget overhead, record actual overhead, apply overhead to WIP,
eliminate overapplied/underapplied overhead
b) Budget overhead, eliminate overapplied/underapplied overhead, record
actual overhead, apply overhead to WIP
c) Apply overhead, budget overhead, record actual overhead, eliminate
overapplied/underapplied overhead
d) Record actual overhead, apply overhead, budget overhead, eliminate
overapplied/underapplied overhead
View Answer
Answer: a) Budget overhead, record actual overhead, apply overhead to
WIP, eliminate overapplied/underapplied overhead
Explanation: The process begins by budgeting overhead, recording actual
overhead, applying overhead, and adjusting for over- or underapplied
overhead.
Question 10
How are actual manufacturing overhead costs recorded during the year?
a) Debits to the work-in-process account
b) Debits to the manufacturing overhead account
c) Credits to the manufacturing overhead account
d) Credits to the work-in-process account
View Answer
Answer: b) Debits to the manufacturing overhead account
Explanation: Actual manufacturing overhead costs are debited to the
manufacturing overhead account.
Question 11
WGU D101 ACTUAL EXAM QUESTIONS
WITH 100% ACCURATE SOLUTIONS +
RATIONALES 2026 LATEST UPDATED
SOLUTIONS
Question 01
Which of the following should be included as manufacturing overhead
cost?
a) The wages of employees who work on production lines
b) The raw materials used in the finishing department
c) The direct materials used to make a product
d) The wages of factory custodians
View Answer
Answer: d) The wages of factory custodians
Explanation: The wages of factory custodians are considered part of
manufacturing overhead because they are indirect labor costs related to
production.
,Question 02
The glue and nails used in a manufacturing process should be included
in which cost category?
a) Administrative costs
b) Manufacturing overhead costs
c) Prepaid supplies
d) Direct materials costs
View Answer
Answer: b) Manufacturing overhead costs
Explanation: Glue and nails are considered indirect materials and are part
of manufacturing overhead costs.
Question 03
. How is the purchase of raw materials on open account recorded?
a) Debit to accounts payable
b) Credit to raw materials inventory
c) Credit to work-in-process inventory
d) Debit to raw materials inventory
View Answer
Answer: d) Debit to raw materials inventory
Explanation: A purchase of raw materials on account increases raw
materials inventory, which is recorded as a debit.
Question 04
Which journal entry is used to record payment of factory rent in cash?
a) Debit to finished goods inventory
b) Debit to cost of goods sold
c) Debit to work-in-process inventory
d) Debit to manufacturing overhead
View Answer
Answer: d) Debit to manufacturing overhead
Explanation: Payment for factory rent is recorded as manufacturing
overhead, which is an indirect cost of production.
Question 05
What is the manufacturing overhead rate that is applied to work-in-
process during manufacturing?
,a) An estimate based on expected overhead and machine/labor hours
b) The actual costs of manufacturing overhead components
c) An estimate based on actual costs divided by products made
d) The actual costs of manufacturing overhead divided by total products
View Answer
Answer: a) An estimate based on expected overhead and machine/labor
hours
Explanation: Manufacturing overhead is typically applied to work-in-
process using a predetermined overhead rate based on expected costs and
allocation factors like machine or labor hours.
Question 06
In a job order costing system, what does a debit to work-in-process
inventory and a credit to salaries and wages payable represent?
a) Recognizing total labor costs
b) Applying indirect labor costs to work-in-process inventory
c) Assigning direct labor costs to products being manufactured
d) Payment of salaries to factory employees
View Answer
Answer: c) Assigning direct labor costs to products being manufactured
Explanation: This journal entry reflects assigning direct labor costs to the
work-in-process inventory.
Question 07
In a job order costing system, what does a debit to manufacturing
overhead and a credit to salaries and wages payable represent?
a) Recording indirect labor costs to manufacturing overhead
b) Paying the salaries of indirect laborers
c) Recording direct labor costs
d) Paying direct laborers
View Answer
Answer: a) Recording indirect labor costs to manufacturing overhead
Explanation: Indirect labor costs (such as supervisors) are recorded as part
of manufacturing overhead.
Question 08
A company budgets manufacturing overhead at $500,000 and direct labor
hours at 20,000. What is the predetermined overhead rate?
, a) $36 per direct labor hour
b) $20 per direct labor hour
c) $25 per direct labor hour
d) $61 per direct labor hour
View Answer
Answer: c) $25 per direct labor hour
Explanation: The predetermined overhead rate is calculated as budgeted
overhead divided by budgeted direct labor hours ($500,,000 = $25).
Question 09
What is the correct order of steps for accounting for manufacturing
overhead?
a) Budget overhead, record actual overhead, apply overhead to WIP,
eliminate overapplied/underapplied overhead
b) Budget overhead, eliminate overapplied/underapplied overhead, record
actual overhead, apply overhead to WIP
c) Apply overhead, budget overhead, record actual overhead, eliminate
overapplied/underapplied overhead
d) Record actual overhead, apply overhead, budget overhead, eliminate
overapplied/underapplied overhead
View Answer
Answer: a) Budget overhead, record actual overhead, apply overhead to
WIP, eliminate overapplied/underapplied overhead
Explanation: The process begins by budgeting overhead, recording actual
overhead, applying overhead, and adjusting for over- or underapplied
overhead.
Question 10
How are actual manufacturing overhead costs recorded during the year?
a) Debits to the work-in-process account
b) Debits to the manufacturing overhead account
c) Credits to the manufacturing overhead account
d) Credits to the work-in-process account
View Answer
Answer: b) Debits to the manufacturing overhead account
Explanation: Actual manufacturing overhead costs are debited to the
manufacturing overhead account.
Question 11
