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Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the...

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. Spoiled fillets generally constitute​ 4% of the good fillets. Data for April 2012 are as ​follows:

WIP, beginning inventory​ 4/1/2012

​90,000 fillets

   Direct materials​ (100% complete)

   Conversion costs​ (50% complete)

Started during April

​135,000 fillets

Completed and transferred out​ 4/31/2012

​189,000 fillets

​WIP, ending inventory​ 4/31/2012

​26,000 fillets

   Direct materials​ (100% complete)

   Conversion costs​ (25% complete)

Costs for​ April:

  ​ WIP, beginning​ Inventory:

     Direct materials

​ $ 135,000

     Conversion costs

​100,910

Direct materials added

​303,000

Conversion costs added

​388,130

A) Determine the number of units of NORMAL spoilage

B) Determine the number of units of ABNORMAL spoilage

C) What is the total cost of units transferred out to finished goods?

D) What is the total cost assigned to Ending WIP?

E) What cost, if any, is assigned to Abnormal Spoilage?

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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