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:

Conceptual Framework

A system of interrelated objectives and fundamentals that provides the foundation for financial accounting and reporting standards.

Accounting Project

A task or series of tasks undertaken to maintain, review, or improve the financial recording and reporting processes within an organization or for a specific purpose.

Objectives Project

A planned set of tasks aimed at achieving specific goals within a defined timeframe, usually with set objectives to guide its execution.

Specific Objective

A precise and measurable goal that an entity aims to achieve.