Fish Fillet Incorporated obtains fish and then processes them into frozen fillet
ID: 2598582 • Letter: F
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 40%converted. Spoiled fillets generally constitute 4%of the good fillets. Data for April 2015 are as follows:
WIP, beginning inventory 4/1/2015
90 000 fillets
Direct materials (100% complete)
Completed and transferred out 4/31/2015
182 000 fillets
WIP, ending inventory 4/31/2015
32 000 fillet
Direct materials (100% complete)
Costs for April:
WIP, beginning Inventory:
Direct materials
$ 131 000
Conversion costs
95 910
Direct materials added
300 000
Conversion costs added
383 130
What is the total cost per equivalent unit using the weighted-average method of process costing?
A. $ 4.22
B.
$ 2.34
C.$ 3.14
D.$ 1.88
WIP, beginning inventory 4/1/2015
90 000 fillets
Explanation / Answer
Answer:- The total cost per equivalent units using the weighted average method of process costing is $1.88
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