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 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: Direct Materials 40,000 Conversion Costs 20,000 40,000 Units started and completed Units, beginning work in process: 20,000 x 0% 20,000 x 50% Units, ending work in process: 20,000 100% 20,000 25% Equivalent units of output 60,000 Costs in beginning work in process were direct materials, $25,000: conversion costs, $80,000. Manufacturing costs incurred during April were direct materials, $180,000, conversion costs, $352,000. 10,000 5,000 55,000 Required: 1. Prepare a physical flow schedule for April. 2. Compute the cost per equivalent unit for April. If required, round your answer to the nearest cent 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.

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 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: Direct Materials 40,000 Conversion Costs 20,000 40,000 Units started and completed Units, beginning work in process: 20,000 x 0% 20,000 x 50% Units, ending work in process: 20,000 100% 20,000 25% Equivalent units of output 60,000 Costs in beginning work in process were direct materials, $25,000: conversion costs, $80,000. Manufacturing costs incurred during April were direct materials, $180,000, conversion costs, $352,000. 10,000 5,000 55,000 Required: 1. Prepare a physical flow schedule for April. 2. Compute the cost per equivalent unit for April. If required, round your answer to the nearest cent 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.

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Description: Answer complete question otherwise skip it, answer in text form please (without image) FIFO Method, Unit Cost, Valuation of Goods Transferred Out and Ending Work in ProcessDama Company produces women's blouses and uses the FIFO method to account

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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