Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were 3⁄5 completed in the Blending Department. During June, 55,000 units entered the Blending Department from the Refining Department. During June, the units in process at the beginning of the month were completed. Of the 55,000 units entering the department,all were completed except 5,200 units that were 1⁄5 completed. The equivalent units for conversion costs for June for the Blending Department were computed as follows:Equivalent units of production in June:To process units in inventory on June 1: 6,400 × 3⁄5                               3,840To process units started and completed in June: 55,000 – 6,400          48,600To process units in inventory on June 30: 5,200 × 1⁄5                              1,040Equivalent units of production                                                              53,480List the errors in the computation of equivalent units for conversion costs for the Blending Department for June.

Question
Asked Jan 21, 2020
93 views

Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were 3⁄5 completed in the Blending Department. During June, 55,000 units entered the Blending Department from the Refining Department. During June, the units in process at the beginning of the month were completed. Of the 55,000 units entering the department,
all were completed except 5,200 units that were 1⁄5 completed. The equivalent units for conversion costs for June for the Blending Department were computed as follows:
Equivalent units of production in June:
To process units in inventory on June 1: 6,400 × 3⁄5                               3,840
To process units started and completed in June: 55,000 – 6,400          48,600
To process units in inventory on June 30: 5,200 × 1⁄5                              1,040
Equivalent units of production                                                              53,480
List the errors in the computation of equivalent units for conversion costs for the Blending Department for June.

check_circle

Expert Answer

Step 1
Accounting homework question answer, step 1, image 1
fullscreen
Step 2

List the errors in the computation of equivalent units for conversi...

Accounting homework question answer, step 2, image 1
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: what is marketing

A: Introduction:

question_answer

Q: The table below contains selected information from recent financial statements of The Home Depot, In...

A: Gross profit ratio is computed by dividing the gross profit by the sales and is expressed in percent...

question_answer

Q: Show how managers can gain insight into the causes of a sales-volume variance by subdividing the com...

A: Sales Volume Variance:The sales volume variance is the difference of budgeted amount and the actual ...

question_answer

Q: On January 1, 2016, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $...

A: Prepare journal entry to record in the books of Borrower as on 31st December 2018.

question_answer

Q: Why are most large companies such as Microsoft, Pepsico, Caterpillar and AutoZone formed as corporat...

A: Corporation:

question_answer

Q: When is the stated interest rate of a debt instrument presumedto be fair?

A: Click to see the answer

question_answer

Q: “Relevant costs for pricing decisions are full costs of the product.” Do you agree? Explain.

A: Pricing Decisions:Pricing decisions are those decisions that are related to ascertain the price of a...

question_answer

Q: III. (10 Points) Presented below is the adjusted trial balance of ABC Corporation at December 31, 20...

A: Calculate the value of cash.The difference of sum of credit and debit is equal to cash.The sum of cr...

question_answer

Q: Simpson Auto Body Repair purchased $19,460 of Machinery. The company paid $3,959 in cash at the time...

A: a)Answer: Increase total assets by a net amount of $15,501 and increase liabilities by $15,501. Just...