Cost of Production Report: Average Cost Method

Use the average cost method with the following data:

Work in process, December 1, 7,400 units, 10% completed	$72,002
Materials added during December from Weaving Department, 139,900 units	1,322,055
Direct labor for December	340,697
Factory overhead for December	269,348
Goods finished during December (includes goods in process, December 1), 136,900 units
Work in process, December 31, 10,400 units, 70% completed

Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.

Tanner Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended December 31, 2016
Unit Information
Units charged to production:
Inventory in process, December 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to finished goods in December
Inventory in process, December 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
		Costs
Total costs for December in Cutting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs assigned to production:
Inventory in process, December 1		$
Costs incurred in December
Total costs accounted for by the Cutting Department		$
Costs allocated to completed and partially completed units:
Transferred to finished goods in December		$
Inventory in process, December 31
Total costs assigned by the Cutting Department		$