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:

Costs in beginning work in process were direct materials, $20,000; conversion costs, $80,000. Manufacturing costs incurred during April were direct materials, $240,000; conversion costs, $320,000.

Direct Materials Conversion Costs 40,000 Units started and completed Units, beginning work in process: 40,000 10,000 0% 10,000 50% 5,000 Units, ending work in process: 20,000 20,000 100% 20,000 25% 5,000 50,000 Equivalent units of output 60,000