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31) Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail
31) Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to undetectable defects. Inspection occurs when units are 45% converted. Spoiled fillets generally constitute 6% of the good fillets. Data for April 2017 are as follows: WIP, beginning inventory 4/1/2017 93,000 fillets Direct materials (100% complete) Conversion costs (50% complete) Completed and transferred out 4/31/2017 Direct materials (100% complete) Started during April 133,000 fillets 183,000 fillets 30,000 fillets WIP, ending inventory 4/31/2017 Conversion costs (25% complete) Costs for April WIP, beginning Inventory: Direct materials Conversion costs $132,000 97,910 309,000 387,130 Direct materials added Conversion costs added What is the number of total spoiled units? B) 74420 units A) 13,000 units C) 32,000 units D) 7000 units
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