Question

of the current year, 6,400 units we 062 EX 17-13 Errors in equivalent unit computation Napoo Refining Company processes gasoline. On June 1 of the current 3s completed in the Blending Department. During June, 55,000 units entere Department from the Refining Department. During June, the units in process at of the month were completed. Of the 55,000 units entering the department, all we its entered the Blendio ocess at the beginning ment, all were completed

Answer 1

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C D G H Answer in the given question, equivalent units has to be calculated by FIFO, as units entered first are completed first. As equivalent units has already been calculated, it has some errors in it. There are following errors while calculating the equivalent units in the given statement 1) to calculate the equivalent units to complete the beginning inventory, the uncompleted fraction has to be multiplied with the beginning inventory instead of completed percentage that is 2/5 has to be multiplied with 6400 units instead of 3/5 2) to calculate the units started and completed, the units remaining uncompleted that is in ending inventory has to be substracted instead of beginning inventory units that is 5200 has to be subtracted from 55000, instead of 6400 units Note the following is the corect equivalent units Equivalent Particulars converison units From Beginning inventory (6400*2/5) 2560 Units started and completed (55000- 0 5200) 49800 1 Units in ending inventory (5200*1/5) 1040 2 Total equivalent units 53400 4 For any help please comment in the comment box