Errors in Equivalent Unit Computation Napco Refining Company processes gasoline. On June 1 of the current year, 4,800 units were 3/5 completed in the Blending Department. During June, 43,200 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 43,200 units entering the department, all were completed except 5,800 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: 4,800 × 3/5 2,880 To process units started and completed in June : 43,200 – 4,800 38,400 To process units in inventory on June 30: 5,800 × 1/5 1,160 Equivalent units of production 42,440 Enter the correct amounts in the computation of equivalent units for conversion costs for the Blending Department for June. To process units in inventory on June 1 To process units started and completed in June To process units in inventory on June 30 Equivalent units of production
Errors in Equivalent Unit Computation Napco Refining Company processes gasoline. On June 1 of the current year, 4,800 units were 3/5 completed in the Blending Department. During June, 43,200 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 43,200 units entering the department, all were completed except 5,800 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: 4,800 × 3/5 2,880 To process units started and completed in June : 43,200 – 4,800 38,400 To process units in inventory on June 30: 5,800 × 1/5 1,160 Equivalent units of production 42,440 Enter the correct amounts in the computation of equivalent units for conversion costs for the Blending Department for June. To process units in inventory on June 1 To process units started and completed in June To process units in inventory on June 30 Equivalent units of production
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Errors in Equivalent Unit Computation
Napco Refining Company processes gasoline. On June 1 of the current year, 4,800 units were 3/5 completed in the Blending Department. During June, 43,200 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 43,200 units entering the department, all were completed except 5,800 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: 4,800 × 3/5 | 2,880 |
| To process units started and completed in June : 43,200 – 4,800 | 38,400 |
| To process units in inventory on June 30: 5,800 × 1/5 | 1,160 |
| Equivalent units of production | 42,440 |
Enter the correct amounts in the computation of equivalent units for conversion costs for the Blending Department for June.
| To process units in inventory on June 1 | |
| To process units started and completed in June | |
| To process units in inventory on June 30 | |
| Equivalent units of production |
Expert Solution
Step 1
Inventory:
Inventory is a physical item of trade sold by suppliers during their accounting period.
Work in process inventory is not ready to sell in the market because it is partially completed.
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