q 26

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 6,000 units WIP, Beginning inventory April 1 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 ni 5,000 units WIP, ending inventory April 30 Direct materials: 100% complete Conversion costs: 65% complete Costs WIP, beginning inventory Direct materials Conversion costs Direct materials added during April Conversion costs added during April $50,000 30,000 100,000 140,000 What is the number of total spoiled units? O A. 4,500 units OB. 3,600 units O c. 1,600 units OD. 2,400 units O E 2,000 units