Wgu D101 Cost And Managerial Accounting 2023/2024 Exam

Which company should use a job ordering costing system? a. Manufacturer of custom furniture b. Manufacturer of paint c. Food processing plant d. Loan processing firm {Ans: a.}In using a job order costing system, the cost accountant for Paradigm Toys made an entry debiting work-in-process inventory and crediting salaries and wages payable. What was the purpose of this entry? a. To recognize total labor costs, regardless of whether the labor was directly or indirectly related to products b. To apply the indirect labor costs to work-in-process inventory c. To assign direct labor costs to the products being manufactured d. To pay for the salaries of factory employees {Ans: c.}Which of the following statements summarizes how the cost of the ending work-in-process inventory should be calculated? a. The sum of the material costs for only the unfinished units. b. The sum of the material costs plus the conversion costs for the units in beginning work- in-process inventory c. The sum of the material costs plus the conversion costs for the unfinished units d. The sum of the material costs plus the conversion costs for the finished units {Ans: c. Correct! The cost of the ending work-in-process inventory is