Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 3, Problem 13E
Errors in equivalent unit computation
Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were ⅗ 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 ⅕ completed. The equivalent units for conversion costs for June for the Blending Department were computed as follows:
List the errors in the computation of equivalent units for conversion costs for the Blending Department for June.
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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:
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…
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 x
3/5
To process units started and completed in June:
55,000 - 6,400
To process units in inventory on June 30: 5,200
x 1/5
Equivalent units of production
3,840
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
48,600
1,040
53,480
Enter the correct…
Chapter 3 Solutions
Managerial Accounting
Ch. 3 - Which type of cost system, process or job order,...Ch. 3 - In job order cost accounting, the three elements...Ch. 3 - In a job order cost system, direct labor and...Ch. 3 - Why is the cost per equivalent unit often...Ch. 3 - What is the purpose for determining the cost per...Ch. 3 - Rameriz Company is a process manufacturer with two...Ch. 3 - What is the most important purpose of the cost of...Ch. 3 - How are cost of production reports used for...Ch. 3 - Job order versus process costing Which of the...Ch. 3 - Kraus Steel Company has two departments, Casting...
Ch. 3 - The Rolling Department of Kraus Steel Company had...Ch. 3 - The Rolling Department of Kraus Steel Company had...Ch. 3 - The cost of direct materials transferred into the...Ch. 3 - The costs per equivalent unit of direct materials...Ch. 3 - In October, the cost of materials transferred into...Ch. 3 - Prob. 8BECh. 3 - Entries for materials cost flows in a process cost...Ch. 3 - Flowchart of accounts related to service and...Ch. 3 - Radford Inc. manufactures a sugar product by a...Ch. 3 - The cost accountant for River Rock Beverage Co....Ch. 3 - The Converting Department of Worley Company had...Ch. 3 - Data for the two departments of Kimble Pierce...Ch. 3 - The following information concerns production in...Ch. 3 - a. Based upon the data in Exercise 17-7, determine...Ch. 3 - Equivalent units of production Kellogg Company...Ch. 3 - Costs per equivalent unit Georgia Products Inc....Ch. 3 - The charges to Work in ProcessAssembly Department...Ch. 3 - a. Based on the data in Exercise 17-11, determine...Ch. 3 - Errors in equivalent unit computation Napco...Ch. 3 - Cost per equivalent unit The following information...Ch. 3 - Costs per equivalent unit and production costs...Ch. 3 - Cost of production report The debits to Work in...Ch. 3 - Cost of Production report The Cutting Department...Ch. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - The Converting Department of Tender Soft Tissue...Ch. 3 - Units of production data for the two departments...Ch. 3 - The following information concerns production in...Ch. 3 - Prob. 24ECh. 3 - The following information concerns production in...Ch. 3 - Prob. 26ECh. 3 - Prepare a cost of production report for the...Ch. 3 - Entries for process cost system Port Ormond Carpet...Ch. 3 - Cost of production report Hana Coffee Company...Ch. 3 - Equivalent units and related costs; cost of...Ch. 3 - Work in process account data for two months; cost...Ch. 3 - Sunrise Coffee Company roasts and packs coffee...Ch. 3 - Entries for process cost system Preston Grover...Ch. 3 - Cost of production report Bavarian Chocolate...Ch. 3 - Equivalent units and related costs; cost of...Ch. 3 - Work in process account data for two months; cost...Ch. 3 - Blue Ribbon Flour Company manufactures flour by a...Ch. 3 - Dura-Conduit Corporation manufactures plastic...Ch. 3 - Analyzing process cost elements across product...Ch. 3 - Analyzing process cost elements over time Pix...Ch. 3 - Determining cost relationships Midst ate...Ch. 3 - Ethics in Action You are the Cookie division...Ch. 3 - Communications Jamarcus Bradshaw, plant manager of...Ch. 3 - Accounting for materials costs In papermaking...Ch. 3 - During December, Krause Chemical Company had the...Ch. 3 - Jones Corporation uses a first-in, first-out...Ch. 3 - Kimbeth Manufacturing uses a process cost system...Ch. 3 - A company is using process costing with the...
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