Question
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 nondetectible defects. Inspection occurs when units are 50% converted. Spoiled fillets generally constitute 4% of the good fillets. Data for April 2015 are as follows:
WIP, beginning inventory 4/1/201585,000 fillets
Direct materials (100% complete)
Conversion costs (50% complete)
Started during April130,000 fillets
Completed and transferred out 4/31/2015180,000 fillets
WIP, ending inventory4/31/201522,000 fillets
Direct materials (100% complete)
Conversion costs (20% complete)
Costs for April:
WIP, beginning Inventory:
Direct materials$ 130,000
Conversion costs95,910
Direct materials added300,000
Conversion costs added383,130
What is the number of total spoiled units?
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