Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 40,00040,000
Units, beginning work in process:
16,000\times 0%
16,000\times 50%8,000
Units, ending work in process:
20,000\times 100%20,000
20,000\times 25%5,000
Equivalent units of output 60,00053,000
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, $339,200.Compute the cost per equivalent unit for April. If required, round your answer to the nearest cent.
$
per equivalent unit
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
Feedback
Check My Work
Prepare the journal entry that transfers the costs from Cutting to Sewing.
Work in Process-Sewing
x
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King

3rd Edition

0070054142, 978-0070054141

More Books

Students also viewed these Accounting questions

Question

How soon will nanotechnology give rise to commercial products?

Answered: 1 week ago

Question

What role does communication play in developing personal identity?

Answered: 1 week ago