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 3.5% of the good fillets. Data for April 2008 are as follows: WIP, beginning inventory 4/1/2008 40,000 fillets Direct materials (100% complete) Conversion costs (50% complete) Started during April 75,000 fillets Completed and transferred out 4/31/2008 100,000 fillets WIP, ending inventory 4/31/2008 8,000 fillets Direct materials (100% complete) Conversion costs (20% complete) Costs for April: WIP, beginning Inventory: Direct materials $ 55,000 Conversion costs 40,000 Direct materials added 145,100 Conversion costs added 188,065 What is the number of total spoiled units?
A、8,000 units
B、5,000 units
C、25,000 units
D、7,000 units