Answer the following questions using the information below:
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 3.5% of the good fillets. Data for April 2012 are as follows:
Costs for April:

-The cost per good unit in the weighted-average method is equal to the:

Question

Answer the following questions using the information below:
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 3.5% of the good fillets. Data for April 2012 are as follows:
  Costs for April:
 
-The cost per good unit in the weighted-average method is equal to the:

Quizplus · Accepted Answer

In the weighted-average method, the cost per equivalent unit includes both direct materials and conversion costs, as well as a share of normal spoilage. Therefore, option A is the correct answer. Option B only includes direct materials and conversion costs, while option C divides total costs by total equivalent units without accounting for normal spoilage. Option D is not correct as option A is the best choice.

Answer the Following Questions Using the Information Below