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Split Bats Company manufactures baseball bats in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non-detectable materials defects. Inspection occurs at the end of the process. Spoiled units generally constitute 2 percent of the good units. Data for April are as follows:

WIP, Beginning inventory April 1	6,000 units
Direct materials: 100% complete
Conversion costs: 75% complete
Started during April	104,000 units
Completed and transferred out during month	102,600 units
WIP, ending inventory April 30	5,000 units
Direct materials: 100% complete
Conversion costs: 65% complete
Costs:
WIP, beginning inventory:
Direct materials	$50,000
Conversion costs	30,000
Direct materials added during April	100,000
Conversion costs added during April	140,000

What is the number of total spoiled units?\

A.

4,500 units

B.

3,600 units

C.

1,600 units

D.

2,400 units

E.

2,000 units