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:
18,000 0%
18,000 50%							9,000
Units, ending work in process:
20,000 100%			20,000
20,000 25%							5,000
Equivalent units of output			60,000				54,000

Costs in beginning work in process were direct materials, $20,000; conversion costs, $70,000. Manufacturing costs incurred during April were direct materials, $240,000; conversion costs, $345,600.

Required:

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1. Prepare a physical flow schedule for April.

Units to account for:	blank
Started and completedUnits, beginning work in processUnits, ending work in processUnits, beginning work in process	Units, beginning work in process
Started and completedUnits, ending work in processUnits startedUnits started	Units started
Total units to account for	fill in the blank 358fbf07dfa3f91_5
Units accounted for:	blank
Started and completedUnits startedStarted and completed	Started and completed
Units, beginning work in processUnits startedUnits, beginning work in process	Units, beginning work in process
Units, ending work in processUnits startedUnits, ending work in process	Units, ending work in process
Total units accounted for	fill in the blank 358fbf07dfa3f91_12

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2. Compute the cost per equivalent unit for April. If required, round your answer to the nearest cent. $fill in the blank 8a4b97051ff0026_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 8a4b97051ff0026_2
Cost of goods transferred out	$fill in the blank 8a4b97051ff0026_3

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

blank	CashFinished GoodsMaterialsOverheadWork in Process-CuttingWork in Process-SewingWork in Process-Cutting	Work in Process-Cutting
	CashFinished GoodsMaterialsOverheadWork in Process-CuttingWork in Process-SewingWork in Process-Sewing		Work in Process-Sewing