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Category > Accounting Posted 19 Aug 2017 My Price 9.00

Napco Refining Company

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 depart- ment, 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 Blend- ing Department for June.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 11:08 PM My Price 9.00

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