White Company produces men's shorts and uses the FIFO method to account for its manufacturing costs. The product White makes passes through two processes: cutting and sewing. During May, White's controller prepared the following equivalent units schedule for the cutting department:

Costs in beginning work in process were direct materials, $17,000; conversion costs, $83,000. Manufacturing costs incurred during May were direct materials, $240,000; conversion costs, $320,000.

Required:
1. Prepare a physical flow schedule for May.
2. Compute the cost per equivalent unit for May.
3. Determine the cost of ending work in process and the cost of goods transferred out.
4. Prepare the journal entry that transfers the costs from cutting tosewing.

Transcribed Image Text:

Direct Materials Conpersion Costs Units started and completed 40,000 40,000 Units, beginning work in process: Units, ending work in process: Equivalent units of output 10,000 × 0% 10,000 × 50% 5,000 20,000 20,000 × 100% 20,000 × 25% 5,000 50,000 60,000