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

Question

Quizplus · Accepted Answer

The cost of the goods completed is $210,132. The total cost of the units started is $155,000 (50,000 units x $3.10 per unit). The cost of the units completed is $210,132 (52,000 units x $4.04 per unit).

Use the Following Information for the Next 4 Questions