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:

What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent.)
A) $2025; $42,749
B) $50,700; $15,470
C) $96,730; $101,227
D) $101,227; $25,229

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 undetectable defects. Spoiled fillets generally constitute 4% of the good fillets. Data for April 2017 are as follows:

What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent.)

What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent.)
A) $2025; $42,749 
B) $50,700; $15,470 
C) $96,730; $101,227 
D) $101,227; $25,229

Quizplus · Accepted Answer

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* Equivalent unit calculations:
Direct Materials: 90,000 + 135,000 = 225,000 units
Conversion Costs: 189,000 + 10,000 + (26,000 x 25%) = 205,500 units
Total cost per equivalent unit = $1.95 + $2.38 = $4.33
Direct materials = 26,000 units × $1.95 = $50,700
Conversion costs = 26,000 units × 30% × $2.38 = $15,470

Fish Fillet Incorporated Obtains Fish and Then Processes Them into Frozen