Kelly, Inc

question 51

Multiple Choice

Kelly, Inc. uses a weighted-average process costing system that calculates normal rework as 2% of the units passing inspection. The inspection point is at the 75% point and units failing inspection are returned to the 40% point. During the current period, 52,000 units were started; 62,000 units inspected; and 52,000 units completed. Direct material is added at the 50% point and conversion costs occur uniformly. Beginning work in process was 10,000 units, 55% complete and ending work in process was 8,000 units, 85% complete. Costs per equivalent unit for material were $1.00 and $3.00 for conversion costs.
The loss from abnormal rework was:

• A) $3,200
• B) $2,470
• C) $1,120
• D) $4,018

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Definitions:

ON/OFF Switching

ON/OFF Switching refers to a basic control mechanism that allows electrical or electronic devices to be turned on or off with a switch.

Hot Swappable I/O Modules

Input/Output modules designed to be exchanged or replaced without shutting down the system they are part of.

Power On

The action or process of activating a device or system, providing it with electrical power to begin operation.

PLC Operating

Pertains to the functioning and management of a Programmable Logic Controller, a digital computer used for automation of electromechanical processes.