Laura Company produces women's blouses and uses the FIFO method to account for its manufacturing costs. The product Laura makes passes through two processes: Cutting and Sewing. During April, Laura's controller prepared the following equivalent units schedule for the Cutting Department:

 

Direct Materials Conversion Costs Units started and completed45,00045,000Units, beginning work in process: 16,000 0% 16,000 50%8,000Units, ending work in process: 20,000 100%20,000 20,000 25%5,000Equivalent units of output65,00058,000

Costs in beginning work in process were direct materials, $20,000; conversion costs, $80,000. Manufacturing costs incurred during April were direct materials, $195,000; conversion costs, $371,200.

Required:

1.Prepare a physical flow schedule for April.

Laura Company Physical Flow Schedule Units to account for: Units, beginning work in process

Units started

Total units to account for Units accounted for: Started and completed

Units, beginning work in process

Units, ending work in process

Total units accounted for

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$

 

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

Work in Process-Sewing

Work in Process-Cutting