WGU UFC 1 Managerial Accounting Pre-assessment: -
Questions With Relevant Solutions
Which Feature of managerial accounting improves a company's ability to plan
and control operations?
a) It requires strict adherence to GAAP.
b) It allows comparability across businesses.
c) It provides earnings per share.
d) It generates detailed information on product cost. Right Ans - It
generates detailed information on product cost.
Which statement describes period costs?
a) They flow directly to the balance sheet as expenses.
b) They pertain to costs necessary to manufacture the product.
c) They flow directly to the current income statement as expenses.
d) They include direct materials, direct labor, and manufacturing overhead
costs. Right Ans - 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?
a) $100.
b) $500.
c) $600.
d) $1,000. Right Ans - $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?
,a) Fixed and variable.
b) Direct and indirect.
c) Product and period.
d) Controllable and not controllable. Right Ans - 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 under-applied and by how much?
a) Over-applied by $9,000.
b) Under-applied by $9,000.
c) Over-applied by $40,000.
d) Under-applied by $40,000. Right Ans - Over-applied by $9,000.
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?
a) $83,000.
b) $87,000.
c) $93,000.
d) $97,000. Right Ans - $93,000.
The following information relates to a company's production activities for the
month of October:
Estimated cost of direct labor: $18,500
Estimated cost of manufacturing overhead: $22,000
Estimated direct labor hours: 900
Actual cost of direct labor: $19,000
Actual cost of manufacturing overhead: $24,000
Actual direct labor hours: 920
, Using direct labor hours as the allocation base, what is the predetermined
overhead rate?
a) $20.56 per direct labor hour.
b) $20.65 per direct labor hour.
c) $24.44 per direct labor hour.
d) $26.09 per direct labor hour. Right Ans - $24.44 per direct labor hour.
The following amounts were reported by a company before adjusting its over-
applied manufacturing overhead of $48,000:
Cost of goods sold: $730,000
Applied overhead: $368,000
Actual overhead: $320,000
What is the company's adjusted cost of goods sold?
a) $682,000.
b) $778,000.
c) $1,050,000.
d) $1,098,000. Right Ans - $682,000.
The manufacturing operations of a company had the following balances for
the year:
Beginning raw materials: $84,000
Beginning work in process: $45,000
Beginning finished goods: $28,000
Ending raw materials: $91,000
Ending work in process: $59,000
Ending finished goods: $23,000
The company transferred $918,000 of completed goods out of work in process
during the year. The overhead is under-applied by $3,000.
What is the adjusted cost of goods sold for the year?
a) $946,000.
Questions With Relevant Solutions
Which Feature of managerial accounting improves a company's ability to plan
and control operations?
a) It requires strict adherence to GAAP.
b) It allows comparability across businesses.
c) It provides earnings per share.
d) It generates detailed information on product cost. Right Ans - It
generates detailed information on product cost.
Which statement describes period costs?
a) They flow directly to the balance sheet as expenses.
b) They pertain to costs necessary to manufacture the product.
c) They flow directly to the current income statement as expenses.
d) They include direct materials, direct labor, and manufacturing overhead
costs. Right Ans - 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?
a) $100.
b) $500.
c) $600.
d) $1,000. Right Ans - $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?
,a) Fixed and variable.
b) Direct and indirect.
c) Product and period.
d) Controllable and not controllable. Right Ans - 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 under-applied and by how much?
a) Over-applied by $9,000.
b) Under-applied by $9,000.
c) Over-applied by $40,000.
d) Under-applied by $40,000. Right Ans - Over-applied by $9,000.
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?
a) $83,000.
b) $87,000.
c) $93,000.
d) $97,000. Right Ans - $93,000.
The following information relates to a company's production activities for the
month of October:
Estimated cost of direct labor: $18,500
Estimated cost of manufacturing overhead: $22,000
Estimated direct labor hours: 900
Actual cost of direct labor: $19,000
Actual cost of manufacturing overhead: $24,000
Actual direct labor hours: 920
, Using direct labor hours as the allocation base, what is the predetermined
overhead rate?
a) $20.56 per direct labor hour.
b) $20.65 per direct labor hour.
c) $24.44 per direct labor hour.
d) $26.09 per direct labor hour. Right Ans - $24.44 per direct labor hour.
The following amounts were reported by a company before adjusting its over-
applied manufacturing overhead of $48,000:
Cost of goods sold: $730,000
Applied overhead: $368,000
Actual overhead: $320,000
What is the company's adjusted cost of goods sold?
a) $682,000.
b) $778,000.
c) $1,050,000.
d) $1,098,000. Right Ans - $682,000.
The manufacturing operations of a company had the following balances for
the year:
Beginning raw materials: $84,000
Beginning work in process: $45,000
Beginning finished goods: $28,000
Ending raw materials: $91,000
Ending work in process: $59,000
Ending finished goods: $23,000
The company transferred $918,000 of completed goods out of work in process
during the year. The overhead is under-applied by $3,000.
What is the adjusted cost of goods sold for the year?
a) $946,000.
