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 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. Normally spoiled fillets generally constitute 4% of the good fillets passing inspection. Data for April 2015 are as follows:

WIP, beginning inventory 4/1/2015 85,000 fillets
Direct materials (100% complete)
Conversion costs (50% complete)
Started during April 130,000 fillets
Completed and transferred out 4/31/2015 180,000 fillets
WIP, ending inventory 4/31/2015 22,000 fillets
Direct materials (100% complete)
Conversion costs (20% complete)

Costs for April:
WIP, beginning Inventory:
Direct materials $ 130,000
Conversion costs 95,910
Direct materials added 300,000
Conversion costs added 383,130


What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method?

Question 17 options:

	$26,720; $25,020
	$88,000; $25,080
	$83,600; $88,000
	$44,000; $11,041

Answer 1

	Direct Materials	Conversion Costs
WIP, beginning inventory	130,000.00	95,910.00
Costs added during period	300,000.00	383,130.00
Total cost to account for	430,000.00	479,040.00
Divide by equivalent units	215,000.00	190,900.00
	2	2.51
No of Units	22000	4,400.00
	44000	11,041.00

Working Note

TOtal Spoilage = 215,000 - (180,000 + 22,000)

=13,000

Units transferred	180,000.00	180,000.00
Normal spoilage 4%	7,200.00	3,600.00
Abnormal spoilage	5,800.00	2,900.00
Ending units	22,000.00	22,000.00
Completion	100%	20%
	22,000.00	4,400.00
Total units	215,000.00	190,900.00