Kelly, Inc

question 88

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 cost of the ending work in process was:

• A) $28,400
• B) $30,532
• C) $32,328
• D) $28,728

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Definitions:

Basidiomycota

A group of fungi distinguished by their spore production on basidia.

Flagellated Cells

Cells that possess one or more whip-like structures called flagella, used for movement or sensing the environment.

Ascomycota

A phylum within the kingdom Fungi, characterized by the formation of spores in specialized sacs called asci, including many molds, yeasts, and morels.

Basidiomycota

A division of fungi characterized by producing spores on basidia, including mushrooms and toadstools.