Exercise 6.21 FIFO Method, Unit Cost, Valuation of Goods Transferred Out, and Ending Work in Process Objective 4 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 40,000 Conversion Costs 40,000 5,000 Units started and completed Units, beginning work in process: 10,000 X 0% 10,000 X 50% Units, ending work in process: 20,000 x 100% 20,000 x 25% Equivalent units of output 20,000 5,000 50,000 60,000 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. Required: 1. Prepare a physical flow schedule for April. Answer 2. Compute the cost per equivalent unit for April. Answer 3. Determine the cost of ending work in process and the cost of goods transferred out