Question:

Obj. 2 Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were 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 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): 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 x (1/5): 1,040

Equivalent units of production: 53,480

List the errors in the computation of equivalent units for conversion costs for the Blending Department for June.