Prepare a cost of production report for the Cutting Department of Arizona Carpet Company for July 2006.
Use the average cost method with the following data:
Work in process, July 1, 10,000 units, 70% complete........ $ 50,000
Materials added during July from Weaving Dept., 182,000 units..... 837,200
Direct labor for July...................... 71,160
Factory overhead for July................... 50,504
Goods finished during July (includes goods in process, July 1),
178,000 units........................ —
Work in process, July 31, 14,000 units, 20% completed........ —