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: Conversion Costs Units started and completed Units, beginning work in process: Direct Materials 40,000 14,000 x 0% 14,000 x 50% Units, ending work in process: 20,000 x 100% 20,000 40,000 7,000 20,000 x 25% Equivalent units of output 60,000 5,000 52,000 Costs in beginning work in process were direct materials, $20,000; conversion costs, $80,000. Manufacturing costs incurred during April were direct materials, $180,000; conversion costs, $332,800. Required: 1. Prepare a physical flow schedule for April. Check My Work 1 more Check My Work uses remaining All work saved. Save and Exit Submit Assignment for Grading eBook Print Item 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 $ 112,000 X $ 548,000 X Feedback Check My Work 2. The equivalent units schedule measures the output of the period. A fully completed unit is counted as a unit of output. Output for a unit in ending work in process is counted by its degree of completion. 3. Unit cost Costs of the period + Output of the period. The cost of goods (services) transferred out is the unit cost multiplied by the units completed. The cost of EWIP is the unit cost multiplied by the equivalent units found in EWIP 4. Prepare the journal entry that transfers the costs from Cutting to Sewing, Work in Process-Sewing 548,000 X Work in Process-Cutting 548,000 X Feedback Check My Work Check My Work 1 more Check My Work uses remaining. All work saved. Save and Exit Submit Assignment for Grading