1. Cost of Production Report

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.

Work in process, January 1, 11,800 units, 60% completed		$152,928*
*Direct materials (11,800 $10.2)	$120,360
Conversion (11,800 60% $4.6)	32,568
	$152,928
Materials added during January from Weaving Department, 181,600 units		$1,879,560
Direct labor for January		382,900
Factory overhead for January		467,988
Goods finished during January (includes goods in process, January 1), 183,800 units
Work in process, January 31, 9,600 units, 45% completed

a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places.

Karachi Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned cost
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$
Costs incurred in January
Total costs accounted for by the Cutting Department			$
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance			$
To complete inventory in process, January 1	$	$
Cost of completed January 1 work in process			$
Started and completed in January	$
Transferred to finished goods in January			$
Inventory in process, January 31
Total costs assigned by the Cutting Department			$

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$
Change in conversion cost per equivalent unit		$

2. Costs per Equivalent Unit

Georgia Products Inc. completed and transferred 192,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 17,000 units, which were 3/4 complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was $950,950, direct labor cost incurred was $49,750, and factory overhead applied was $11,675.

Determine the following for the Pressing Department. Round "cost per equivalent unit" answers to the nearest cent.

a. Total conversion cost	$
b. Conversion cost per equivalent unit	$
c. Direct materials cost per equivalent unit	$

3. Cost of Units Completed and in Process

The charges to Work in ProcessAssembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in ProcessAssembly Department
Bal., 2,000 units, 30% completed	5,060	To Finished Goods, 46,000 units	?
Direct materials, 47,000 units @ $1.3	61,100
Direct labor	145,700
Factory overhead	56,700
Bal. ? units, 20% completed	?

Cost per equivalent units of $1.30 for Direct Materials and $4.40 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period.	$
2. Cost of units transferred to finished goods during the period.	$
3. Cost of ending work in process inventory.	$
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent.	$

b. Did the production costs change from the preceding period?

c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?

4. Equivalent Units of Production

The Converting Department of Hopkinsville Company had 600 units in work in process at the beginning of the period, which were 30% complete. During the period, 12,400 units were completed and transferred to the Packing Department. There were 680 units in process at the end of the period, which were 30% complete. Direct materials are placed into the process at the beginning of production.

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Hopkinsville Company
Number of Equivalent Units of Production
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total