FIFO Method, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process

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:
20,000 0%
20,000 50%							10,000
Units, ending work in process:
20,000 100%			20,000
20,000 25%							5,000
Equivalent units of output			65,000				60,000

Costs in beginning work in process were direct materials, $25,000; conversion costs, $80,000. Manufacturing costs incurred during April were direct materials, $195,000; conversion costs, $384,000.

Required:

1. Prepare a physical flow schedule for April.

Dama Company
Physical Flow Schedule
Units to account for:
Units, beginning work in process	fill in the blank f12aa706bfacfa3_2
Units started	fill in the blank f12aa706bfacfa3_4
Total units to account for	fill in the blank f12aa706bfacfa3_5
Units accounted for:
Started and completed	fill in the blank f12aa706bfacfa3_7
Units, beginning work in process	fill in the blank f12aa706bfacfa3_9
Units, ending work in process	fill in the blank f12aa706bfacfa3_11
Total units accounted for	fill in the blank f12aa706bfacfa3_12

2. Compute the cost per equivalent unit for April. If required, round your answer to the nearest cent. $fill in the blank fce098070fb0f8e_1 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	$fill in the blank fce098070fb0f8e_2
Cost of goods transferred out	$fill in the blank fce098070fb0f8e_3

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

	Work in Process-Sewing	fill in the blank 0ced23f70ff1fa5_2
	Work in Process-Cutting		fill in the blank 0ced23f70ff1fa5_4