Kelly, Inc

question 41

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, 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:

Organizations

Groups of individuals working together towards common goals with a structured framework.

Ecosystem Concept

An approach in business that views industries and markets as interconnected environments where companies work cooperatively and competitively.

Strategic Thinking

The process of planning to achieve a desired future, considering long-term success and integrating foresight, insight, and peripheral vision.

Competitive Strategies

Tactics and plans developed by a business to achieve a competitive advantage in the market and outperform its competitors.