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, 7,600 units, 80% completed $82,688*

*Direct materials (7,600 $8.00)$60,800

Conversion (7,600 80% $3.60)21,888

$82,688

Materials added during January from Weaving Department, 117,200 units $949,320

Direct labor for January 181,613

Factory overhead for January 221,972

Goods finished during January (includes goods in process, January 1), 118,600 units

Work in process, January 31, 6,200 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 UnitsDirect MaterialsConversion

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 MaterialsConversion

Total costs for January in Cutting Department$$

Total equivalent units

Cost per equivalent unit$$

Costs assigned to production:

Direct MaterialsConversionTotal

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 the costs per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.

Increase or DecreaseAmount

Change in direct materials cost per equivalent unit $

Change in conversion cost per equivalent unit $