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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
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. Spoiled fillets generally constitute 4% of the good fillets. Data for April 2017 are as follows: WIP, beginning inventory 4/1/2017 88,000 fillets Direct materials (100% complete) Conversion costs (60% complete) Started during April 140,000 fillets Completed and transferred out 4/30/2017 189.000 fillets WIP, ending inventory 4/30/2017 23,000 fillets Direct materials (100% complete) Conversion costs (30% complete) Costs for April: WIP, beginning Inventory: Direct materials $140,000 Conversion costs 100.910 Direct materials added 310.000 Conversion costs added 384,130 Abnormal spoilage totals O A. 16,000 units OB. 8,440 units O C. 7,560 units OD. O units
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