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Errors in equivalent unit computation 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.

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 20, Problem 20.13EX
Textbook Problem

Errors in equivalent unit computation

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.

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Accounting
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