Answer the Following Questions Using the Information Below

question 103

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 2012 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

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Definitions:

Unique Characteristics

Distinctive attributes or features that set something apart from similar entities.

Rent Controls

are government policies or laws that limit the amount landlords can charge for leasing properties to protect tenants from rapid increases in rent.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Shortage

A situation in which demand for a good or service exceeds its supply in a market.