errors in equivalent unit computation

napco refining company processes gasoline. on june 1 of the current year, 6,400 units were $\frac{3}{5}$ 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 $\frac{1}{5}$ 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: $6,400 \times \frac{3}{5}$ \t 3,840
to process units started and completed in june: $55,000 - 6,400$ \t 48,600
to process units in inventory on june 30: $5,200 \times \frac{1}{5}$ \t 1,040
equivalent units of production \t 53,480

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

Question

errors in equivalent unit computation

napco refining company processes gasoline. on june 1 of the current year, 6,400 units were $\frac{3}{5}$ 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 $\frac{1}{5}$ 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: $6,400 \times \frac{3}{5}$ \t 3,840
to process units started and completed in june: $55,000 - 6,400$ \t 48,600
to process units in inventory on june 30: $5,200 \times \frac{1}{5}$ \t 1,040
equivalent units of production \t 53,480

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

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "blank_filling_formatter", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Equivalent Units", "Process Costing", "FIFO Method" ], "new_concepts": [], "current_concepts": [ "Equivalent Units", "Process Costing", "FIFO Method" ] } ## Calculate equivalent units for June 1 inventory Using the *FIFO Method* and *Equivalent Units* knowledge points $$ \begin{aligned} &\text{Units in beginning inventory} = 6,400\ &\text{Work remaining to complete} = 1 - \frac{3}{5} = \frac{2}{5}\ &\text{Equivalent units} = 6,400 \times \frac{2}{5} = 2,560 \end{aligned} $$ ## Calculate units started and completed in June Using the *Process Costing* and *FIFO Method* knowledge points $$ \begin{aligned} &\text{Total units entering department} = 55,000\ &\text{Units in ending inventory (June 30)} = 5,200\ &\text{Units started and completed} = 55,000 - 5,200 = 49,800 \end{aligned} $$ ## Calculate equivalent units for June 30 inventory Using the *Equivalent Units* and *Process Costing* knowledge points $$ \begin{aligned} &\text{Units in ending inventory} = 5,200\ &\text{Fraction completed} = \frac{1}{5}\ &\text{Equivalent units} = 5,200 \times \frac{1}{5} = 1,040 \end{aligned} $$ ## Calculate total equivalent units of production Using the *Equivalent Units* knowledge point $$ \begin{aligned} &\text{Total equivalent units} = 2,560 + 49,800 + 1,040 = 53,400 \end{aligned} $$ 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: 2,560 To process units started and completed in June: 49,800 To process units in inventory on June 30: 1,040 Equivalent units of production: 53,400 { "subject": "Business", "question_type": "Fill-in-the-blank", "knowledge_point": [ "Business", "Accounting", "Process Costing" ] }

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

Calculate equivalent units for June 1 inventory

Calculate units started and completed in June

Calculate equivalent units for June 30 inventory

Calculate total equivalent units of production

Answer: