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: Units started and completed Units, beginning work in process: Conversion Direct Materials Costs 45,000 45,000 12,000 0% 12,000 x 50% 6,000 Units, ending work in process: 20,000 x 100% 20,000 20,000 25% 5,000 Equivalent units of output 65,000 56,000 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, $358,400.