Answer the Following Questions Using the Information Below

question 148

Multiple Choice

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 2018 are as follows:
Costs for April:

-What is the number of total spoiled units?

• A)16,000 units
• B)10,000 units
• C)50,000 units
• D)14,000 units
• E)7,000 units

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Definitions:

Economic Model

A simplified representation of economic processes, used to predict and analyze real-world economic behaviors.

Consumer Tastes

Preferences and inclinations of consumers regarding various goods and services, which can influence their purchasing decisions.

Entrepreneurial Decision-Making

The process through which entrepreneurs assess, decide, and act upon business opportunities and ideas.

Creative Destruction

A process where new innovations lead to the demise of older technologies or methods, driving economic development.