FIFO Method, Unit Cost, Valuation of Goods Transferred Out andEnding Work in Process

Dama Company produces women's blouses and uses the FIFO methodto account for its manufacturing costs. The product Dama makespasses through two processes: Cutting and Sewing. During April,Dama's controller prepared the following equivalent units schedulefor the Cutting Department:

		DirectMaterials				Conversion Costs
Units started and completed			40,000				40,000
Units, beginning work in process:
12,000 × 0%			—				—
12,000 × 50%			—				6,000
Units, ending work in process:
20,000 × 100%			20,000				—
20,000 × 25%			—				5,000
Equivalent units of output			60,000				51,000

Costs in beginning work in process were direct materials,$25,000; conversion costs, $70,000. Manufacturing costs incurredduring April were direct materials, $180,000; conversion costs,$326,400.

Required:

1. Prepare a physical flow schedule forApril.

Dama 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 forApril. If required, round your answer to the nearest cent.
$ per equivalent unit

3. Determine the cost of ending work in processand the cost of goods transferred out.

Cost of ending work in process	$
Cost of goods transferred out	$

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

	Work in Process-Sewing
	Work in Process-Cutting