Answer the Following Questions Using the Information Below

question 22

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:

-Abnormal spoilage totals:

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

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Definitions:

Underpayment Inequity

A situation where a person perceives that they receive less compensation than they deserve, compared to others in similar positions.

Reduce Inputs

A cost-saving and efficiency strategy which focuses on lowering the resources (such as materials, labor, and energy) used in the production process.

Security Needs

Basic human requirements for safety and security, including physical safety, employment, resources, health, and property.

Pension Plan

A retirement plan funded by an employer, providing a fixed income to employees after they retire.