Answer the Following Questions Using the Information Below

question 8

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:

-Normal spoilage totals:

• A)7,000 units
• B)0 units
• C)16,000 units
• D)14,000 units

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