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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 non detectable defects. Inspection occurs when units are 50% converted. Spoiled fillets generally constitute 3.5% of the good fillets. Data for April 2018 are as follows: WIP, beginning inventory April 1, 2018 80,000 fillets Direct materials (100% complete) Conversion costs (50% complete) Started during April 150,000 fillets Completed and transferred in April 200,000 fillets WIP, ending inventory April 30, 2018 16,000 fillets Direct materials (100% complete) Conversion costs (20% complete) Costs for April: WIP, beginning Inventory: Direct materials $ 110,000 Conversion costs 80,000 Direct materials added 290,200 Conversion costs added 376,130 What cost is allocated to abnormal spoilage using the weighted-average process-costing method?
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