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 40,000 Direct Materials Units started and completed 40,000 Units, beginning work in process: 10,000 0% 10,000 x 50% 5,000 Units, ending work in process: 20,000 x 100% 20,000 5,000 20,000 x 25% Equivalent units of output Costs in beginning work in process were direct materials, $20,000; conversion costs, $80,000. Manufacturing costs incurred during April were direct materials, $240,000; conversion costs, $320,000 Required: 60,000 50,000