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 4% of the good fillets. Data for April 2015 are as follows:
$\begin{array} { l }
\text {WIP, beginuing inventory 4/1/2015 }& \text { 85,000 fillets} \ \text {Direct materials (100\% complete) }\ \text {Conversion costs ( $ 50 \% $ complete) }\
\text { Started during April } & 130,000 \text { fillets } \
\text { Completed and transferred out } 4 / 31 / 2015 & 180,000 \text { fillets } \
\text { WIP, ending inventory } 4 / 31 / 2015 & 22,000 \text { fillets }\
\text {Direct materials ( $ 100 \% $ complete) }&\ \text { Conversion costs ( $ 20 \% $ complete) }\
\\text { Costs for April: }\
\text { WIP, beginuning Inventory: }\
\text { Direct materials } & \$ 130,000 \
\text { Conversion costs } & 95,910 \
\text { Direct materials added } & 300,000 \
\text { Conversion costs added } & 383,130
\end{array}$

-Abnormal spoilage totals ________.

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 4% of the good fillets. Data for April 2015 are as follows:
 $\begin{array} { l  }
 \text {WIP, beginuing inventory 4/1/2015 }& \text { 85,000 fillets} \ \text {Direct materials (100\% complete) }\ \text {Conversion costs ( $ 50 \% $ complete) }\
\text { Started during April } & 130,000 \text { fillets } \
\text { Completed and transferred out } 4 / 31 / 2015 & 180,000 \text { fillets } \
\text { WIP, ending inventory } 4 / 31 / 2015 & 22,000 \text { fillets }\
 \text {Direct materials ( $ 100 \% $ complete) }&\ \text { Conversion costs ( $ 20 \% $ complete) }\
\\text { Costs for April: }\
\text { WIP, beginuning Inventory: }\
 \text { Direct materials } & \$ 130,000 \
\text { Conversion costs } & 95,910 \
\text { Direct materials added } & 300,000 \
\text { Conversion costs added } & 383,130
\end{array}$

-Abnormal spoilage totals ________.

Quizplus · Accepted Answer

Abnormal spoilage is the spoilage that exceeds the normal spoilage rate. The normal spoilage rate is 4% of the good units produced. In this case, 180,000 fillets were completed and transferred out, so normal spoilage is 4% of 180,000, which is 7,200 units. Since the total spoilage is 13,000 units (180,000 completed + 22,000 ending WIP - 85,000 beginning WIP - 130,000 started), the abnormal spoilage is 13,000 - 7,200 = 5,800 units.

Answer the Following Questions Using the Information Below: Fish Fillet

Answer the Following Questions Using the Information Below:
Fish Fillet