Kelly, Inc

question 91

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 cost of the goods completed was:

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

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Definitions:

Imagery

Mental pictures; a powerful aid to effortful processing, especially when combined with encoding.

Typewriter

A mechanical or electromechanical machine for writing characters similar to those produced by printer's movable type, typically by means of keys struck by the operator.

Inherent

Existing as a natural or essential part of something.

Recency Effect

The tendency to remember the most recently presented information best, often observed in serial position effect experiments.