2024 UFC1 WGU Managerial Accounting New Latest Updated Version with All Questions from Actual Past Exam
Identify each statement as true or false.
- Process cost systems are used to apply costs to similar products
that are mass-produced in a continuous fashion. ------------ Correct Answer --------- True
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- A process cost system is used when each finished unit is
indistinguishable from another. ------------ Correct Answer --------- True
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- Companies that produce soft drinks, movies, and computer chips
would all use process cost accounting. ------------ Correct Answer --------- False
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- In a process cost system, costs are tracked by individual jobs. ------------ Correct
Answer --------- False
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- Job order costing and process costing track different
- / 4
manufacturing cost elements. ------------ Correct Answer --------- False
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- Both job order costing and process costing account for direct
materials, direct labor, and manufacturing overhead. ------------ Correct Answer --------- True
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- Costs flow through the accounts in the same basic way for both job
order costing and process costing. ------------ Correct Answer --------- True
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- In a process cost system, only one work in process account is
used. ------------ Correct Answer --------- False
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- In a process cost system, costs are summarized in a job cost sheet. ------------ Correct
Answer --------- False
Robert Wilkins has prepared the following list of statements about process cost accounting.
Identify each statement as true or false.
- In a process cost system, the unit cost is total manufacturing costs
for the period divided by the equivalent units produced during the period. ------------ Correct Answer --------- True
The Smelting Department of Kiner Company has the following production and cost data for November.
- / 4
Production: Beginning work in process 3,700 units that are 100% complete as to
materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs.
Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of November.
What is the impact of expenses on the accounting equation? --------- Correct Answer ---- ------ Expenses decrease owners equity
What is the purpose of the financial accounting cycle? --------- Correct Answer ---------- To turn information about transactions into financial statements
How is gross profit computed? --------- Correct Answer ---------- Sales minus cost of goods sold
How is operating profit computed? --------- Correct Answer ---------- Sales minus COGS minus operating costs (overhead)
How do you calculate net profit --------- Correct Answer ---------- sales (revenue) - cogs - operating profit (overhead) - interest and taxes
Which type of account is retained earnings? --------- Correct Answer ---------- Equity
how does a classified balance sheet provide useful information to a decision maker? ---- ----- Correct Answer ---------- it distinguishes between current and long term assets (and c and lt liabilities)
what information does a balance sheet provide to a decision maker? --------- Correct Answer ---------- summary of the financial position of a company at a particular date (shows the balance of A = L + OE)
how can net cash be low if sales are high? --------- Correct Answer ---------- sales payed on credit
what is the correct sequence of budgets in a manufacturing business? --------- Correct Answer ---------- Sales, production, direct materials
what are the three primary functions that company managers use managerial accounting information for? --------- Correct Answer ---------- planning controlling, and evaluating
how could a period cost be reported in an income statement? --------- Correct Answer --- ------- as an administrative expense 3 / 4
how are the wages of cashiers classified in a merchandising company? --------- Correct Answer ---------- selling expense
which label is given to the cost of electricity in a furniture factory --------- Correct Answer ---------- Manufacturing overhead
what is contribution margin? --------- Correct Answer ---------- income margin after subtracting variable costs from revenue
how do you calculate variable cost ratio? --------- Correct Answer ---------- divide (revenue - fixed costs) by revenue as a percentage (*100)
why is the concept of relevant range important to a manager? --------- Correct Answer --- ------- outside the relevant range, the variable cost per unit can change
what is applied manufacturing overhead? --------- Correct Answer ---------- the amount applied to the goods produced
What is the label given to the quantity computed as estimated overhead costs divided by estimated level of activity? --------- Correct Answer ---------- predetermined overhead rate
in a job order costing system, what is the proper accounting for a product cost --------- Correct Answer ---------- it is reported as a part of cost of goods sold
which items are considered period costs? --------- Correct Answer ---------- administrative costs
what does ABC costing stand for --------- Correct Answer ---------- activities based costing
how is overhead allocated in a abc system --------- Correct Answer ---------- activity rate multiplied by number of cost driver events
in an ABC system, which name is given to a numerical measure reflecting the amount of a cost associated with a particular overhead cost activity? --------- Correct Answer -------- -- cost driver
what is an example of a situation when a process costing system would be used --------- Correct Answer ---------- oil refinery, simple, uniform manufacturing
How is the production cost per unit computed in a process costing system? --------- Correct Answer ---------- Amount of total production cost divided by the number of units completed during a particular period of time
- / 4