Fish Fillet Incorporated Obtains Fish and Then Processes Them into Frozen

question 139

Multiple Choice

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 undetectable defects.Spoiled fillets generally constitute 4% of the good fillets.Data for April 2017 are as follows:

Costs for April:

Abnormal spoilage totals ________.

• A)8440 units
• B)0 units
• C)7560 units
• D)16,000 units

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Definitions:

Current Position Analysis

The evaluation of a company’s ability to pay its current liabilities.

Short-Term Creditors

Entities or individuals who have provided financial credit to a company with the expectation of being repaid within a short period, usually within a year.

Comparative Financial Statements

Financial statements that present the financial position, results of operations, and cash flows of an entity for multiple periods side-by-side for comparison.

Financial Statements

Financial statements are comprehensive reports created to provide insights into a company's financial performance, position, cash flows, and changes in equity over a specific period, typically including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.