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

question 2

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 cost of the ending work in process was

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