Question
Dama Company produces women's blouses and uses the FIFO method to account for its manufacturing costs. The product Dama makes passes through two processes: Cutting
Dama Company produces women's 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, Dama's controller prepared the following equivalent units schedule for the Cutting Department:
Direct Materials | Conversion Costs | |||||||
Units started and completed | 45,000 | 45,000 | ||||||
Units, beginning work in process: | ||||||||
16,000 0% | ||||||||
16,000 50% | 8,000 | |||||||
Units, ending work in process: | ||||||||
20,000 100% | 20,000 | |||||||
20,000 25% | 5,000 | |||||||
Equivalent units of output | 65,000 | 58,000 |
Costs in beginning work in process were direct materials, $25,000; conversion costs, $70,000. Manufacturing costs incurred during April were direct materials, $260,000; conversion costs, $371,200.
Required:
Question Content Area
1. Prepare a physical flow schedule for April.
Units to account for: | |
Units, beginning work in process | 16,000 |
Units started | 65,000 |
Total units to account for | 81,000 |
Units accounted for: | |
Started and completed | 45,000 |
Units, beginning work in process | 15,000 |
Units, ending work in process | 20,000 |
Total units accounted for | 81,000 |
2. Compute the cost per equivalent unit for April. If required, round your answer to the nearest cent. $10.4 per equivalent unit
3. Determine the cost of ending work in process and the cost of goods transferred out.
Cost of ending work in process $
Cost of goods transferred out $614,200
4. Prepare the journal entry that transfers the costs from Cutting to Sewing.
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