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 5% of the good fillets.Data for April 2017 are as follows:

Costs for April:

Normal spoilage totals ________.

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 5% of the good fillets.Data for April 2017 are as follows:

Costs for April:

Normal spoilage totals ________.

Costs for April:

Normal spoilage totals ________.

Quizplus · Accepted Answer

Normal spoilage = 5% × 184,000 units = 9200 spoiled units

Fish Fillet Incorporated Obtains Fish and Then Processes Them into Frozen