FIFO Method, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Pr
ID: 2340565 • Letter: F
Question
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: Conversion Costs 40,000 Direct Materials Units started and completed 40,000 Units, beginning work in process: 14,000 × 09 14,000 x 50% 7,000 Units, ending work in process: 20,000 × 100% 20,000 20,000 x 25% Equivalent units of output Costs in beginning work in process were direct materials, $25,000; conversion costs, $70,000. Manufacturing costs incurred during April were direct materials, $180,000; conversion costs, $332,800. Required: 1. Prepare a physical flow schedule for April. 5,000 60,000 52,000 Dama Company Units to account for Units, beginning work in process Units started Total units to account for 60,000 v Units accounted for Started and completed40.000 Units, beginning work in process Units, ending work in process Total units accounted for Check My Work 1. A physical flow schedule shows the units to account for and what happened to them. Check My Work NextExplanation / Answer
Physical flow schedule :
2) Cost per equivalent unit of material = 180000/60000 = 3
Cost per equivalent unit of conversion = 332800/52000 = 6.40
3) Cost of ending work in process = (20000*3+5000*6.40) = 92000
Cost of goods transferred out = (40000*3+47000*6.4)+(25000+70000) = $515800
4) Journal entry :
Units to account for Units in beginning work in process 14000 Unit started 60000 Total units to account for 74000 Units accounted for Started and completed 40000 Units in beginning work in process 14000 Units in ending work in process 20000 Total units accounted for 74000Related Questions
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