White Company produces men's shorts and uses FIFO to account for its manufacturing costs.

The product White makes passes through two processes: Cutting and Sewing. During April, White's controller prepared the following equivalent unit schedule for the Cutting Department:

Costs in beginning work in process were materials, $2,000; conversion costs, $8,000. Manu¬
facturing costs incurred during April were materials, $24,000; conversion costs, $32,000.
Required:
1. Prepare a physical flow schedule for April.
2. Compute the cost per equivalent unit for April.
3. Determine the cost of ending work in process and the cost of goods transferred out.
4. Prepare the journal entry that transfers the costs from Cutting to Sewing.

Transcribed Image Text:

Materials Conversion Cost Units started and completed 8,000 8,000 Units, beginning work in process: 2,000 X 0% 2,000 x 50% 1,000 Units, ending work in process: 4,000 x 100% 4,000 4,000 x 25% 1,000 Equivalent units of output 12,000 10,000