Exercise 6.21 FIFO M OBJECTI se 6.21 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 manu- facturing 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: Direct Materials Conversion Costs Units started and completed 40,000 40,000 Units, beginning work in process: 10,000 X 0% 10,000 X 50% 5,000 Units, ending work in process: 20,000 X 100% 20,000 20,000 x 25% 5,000 Equivalent units of output 60,000 50,000 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