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:

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:
1. Prepare a physical flow schedule for April.
2. Compute the cost per equivalent unit for April.
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 to Sewing.

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