Use the Following Information for the Next 4 Questions

question 81

Multiple Choice

Use the following information for the next 4 questions.
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, 50,000 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 goods completed was

• A) $210,132
• B) $208,000
• C) $210,460
• D) $208,328

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Definitions:

Issuing Stock

The process by which a company distributes shares to investors in order to raise capital for business expansion or other financial needs.

Investment Projects

Initiatives undertaken by individuals, firms, or governments involving the allocation of resources with the expectation of future returns.

Interest Rate

The fraction of a total sum charged for borrowing it, often shown as a rate per year.

Expected Rate of Profit

Expected profits divided by money invested.