WGU D101 Cost and Managerial Accounting (OA) – Western Governors University – Complete Objective Assessment Questions and Verified Answers Study Guide

WGU D101 Cost and Managerial Accounting (OA) – Western Governors University – Complete Objective Assessment Questions and Verified Answers Study Guide Introduction This document contains practice questions with verified answers for the WGU D101 Cost and Managerial Accounting Objective Assessment (OA). It covers major course topics including job order costing, process costing, manufacturing overhead, activity-based costing (ABC), cost-volume-profit (CVP) analysis, equivalent units, cost allocation, and managerial accounting concepts. The material is organized in a question-and-answer format, making it useful for exam preparation and review. It serves as a comprehensive study resource for students preparing for the D101 objective assessment. Exam Questions and Answers When manufacturing overhead is underapplied, which entry is included in closing the manufacturing overhead account? a. A debit to cost of goods sold b. A debit to finished goods inventory c. A debit to work-in-process inventory d. A debit to manufacturing overhead --- correct precise answer ---a At the end of an accounting period, the manufacturing overhead account has debits totaling $25,000 and credits totaling $28,000. In this case, which statement is true? a. Actual manufacturing costs were $28,000. b. Manufacturing overhead is underapplied by $3,000. c. Manufacturing overhead is overapplied by $3,000. d. Applied manufacturing overhead costs were $25,000. --- correct precise answer ---c. Smartistry Company uses a job order costing system and closes all underapplied and overapplied manufacturing overhead to cost of goods sold. The company accountant made the following entry at the end of the accounting period: debit to cost of goods sold and credit to manufacturing overhead. What is the purpose of this entry? a. To record underapplied manufacturing overhead b. To transfer the manufacturing overhead costs to work-in-process c. To record overapplied manufacturing overhead d. To record actual manufacturing overhead costs for the period --- correct precise answer ---a