Dama Company produces womens blouses and uses the FIFO method to account for its manufacturing costs. The product Dama makes passes through two processes: Cutting and Sewing. During April, Damas controller had the following information for the Cutting Department:

	Physical Units	Direct Materials	Conversion Costs
Beginning WIP	10,000	20,000	80,000
Started during april	60,000
completed during april	50,000
Ending WIP	20,000
Costs incurred during April		240,000	320,000

Direct materials are added at the beginning of the process. Units in beginning work in process were 50% complete for conversion, and units in ending work in process were 25% complete for conversion.

Required

1. Compute the cost per equivalent unit for April

2. Determine the cost of ending work in process and the cost of goods transferred out.

3. Prepare the journal entry that transfers the costs from Cutting to Sewing.