Fish Fillet Incorporated Obtains Fish and Then Processes Them into Frozen

question 91

Multiple Choice

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. Inspection occurs when units are 40% converted. Spoiled fillets generally constitute 6% of the good fillets. Data for April 2017 are as follows:

What cost is allocated to abnormal spoilage using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent.)

• A) $ 0
• B) $4610
• C) $2091
• D) $2106

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Definitions:

Human Intuition

The ability to understand something immediately, without the need for conscious reasoning, often regarded as a gut feeling or instinct.

Divine Command Theory

A meta-ethical theory which proposes that an action's status as morally good is equivalent to whether it is commanded by God.

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, often defined in terms of the well-being of sentient entities.

Humanism

An outlook or system of thought attaching prime importance to human rather than divine or supernatural matters, emphasizing human dignity and potential.