Answer the Following Questions Using the Information Below:
Fish Fillet

question 112

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 4% of the good fillets. Data for April 2015 are as follows:
$\begin{array} { l } \text {WIP, beginuing inventory 4/1/2015 }& \text { 85,000 fillets} \\ \text {Direct materials (100\% complete) }\\ \text {Conversion costs ( \( 50 \% \) complete) }\\\text { Started during April } & 130,000 \text { fillets } \\\text { Completed and transferred out } 4 / 31 / 2015 & 180,000 \text { fillets } \\\text { WIP, ending inventory } 4 / 31 / 2015 & 22,000 \text { fillets }\\ \text {Direct materials ( \( 100 \% \) complete) }&\\ \text { Conversion costs ( \( 20 \% \) complete) }\\\\\text { Costs for April: }\\\text { WIP, beginuning Inventory: }\\ \text { Direct materials } & \$ 130,000 \\\text { Conversion costs } & 95,910 \\\text { Direct materials added } & 300,000 \\\text { Conversion costs added } & 383,130\end{array}$

-Abnormal spoilage totals ________.

• A) 5,800 units
• B) 0 units
• C) 7,200 units
• D) 13,000 units

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Definitions:

Proper Use

The appropriate, intended, or correct manner of utilizing something according to guidelines, laws, or specifications.

Chattel Mortgage

A loan arrangement where personal movable property is used as security for the loan.

Promissory Note

An economic document that includes a binding commitment from one party to another to deliver a specific amount of funds, payable either upon request or at an agreed-upon date in the future.

Defaulted

The failure to meet legal obligations or conditions, such as not making the required payments on a loan.