Kelly Ltd Uses a Weighted-Average Process Costing System That Calculates

question 4

Multiple Choice

Kelly Ltd 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 number of units reworked was

• A) 3,000
• B) 2,000
• C) 8,000
• D) 10,000

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Definitions:

Peripheral Nervous Systems

The portion of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, facilitating communication to the central nervous system.

Sedative/Tranquilizer

These are drugs or agents that induce a calming effect, reducing excitement, irritability, or anxiety, and often used to facilitate sleep.

Brain Receptors

proteins on the surface of neurons in the brain that receive and respond to chemical signals.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.