1. 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			40,000				40,000
   Units, beginning work in process:
   12,000 0%
   12,000 50%							6,000
   Units, ending work in process:
   20,000 100%			20,000
   20,000 25%							5,000
   Equivalent units of output			60,000				51,000

   Costs in beginning work in process were direct materials, $25,000; conversion costs, $70,000. Manufacturing costs incurred during April were direct materials, $240,000; conversion costs, $326,400.

   Required:

   1. Prepare a physical flow schedule for April.

   Dama Company
   Physical Flow Schedule
   Units to account for:
   Started and completed Units, beginning work in process Units, ending work in process
   Started and completed Units, ending work in process Units started
   Total units to account for
   Units accounted for:
   Started and completed Units started
   Units, beginning work in process Units started
   Units, ending work in process Units started
   Total units accounted for

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

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

   	Cash Finished Goods Materials Overhead Work in Process-Cutting Work in Process-Sewing
   	Cash Finished Goods Materials Overhead Work in Process-Cutting Work in Process-Sewing