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, 11,400 units, 65% completed $120,156* * Direct materials (11,400 x $8.20) $93,480 Conversion (11,400 x 65% $3.60) 26,676 $120,156 Materials added during January from Weaving Department, 175,600 units $1,466,260 Direct labor for January 289,627 Factory overhead for January 353,988 Goods finished during January (includes goods in process, January 1), 177,600 units Work in process, January 31, 9,400 units, 40% completed praces 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 11,400 Received from Weaving Department 175,600 187,000 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 11,400 0 3,990 Started and completed in January 164,200 164,200 164,200 Transferred to finished goods in January 175,600 X 164,200 X 168,190 X 9,400 9,400 Inventory in process, January 31 3,760 Total units to be assigned cost 185,000 x 173,600 X 171,950 X Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department 1,466,260 643,615 Total equivalent units 173,600 X 171,950 Cost per equivalent unit 8.45 X 3.74 Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 120,156 Costs incurred in January 2,109,875 Total costs accounted for by the Cutting Department 2,230,031 Costs allocated to completed and partially completed units: Inventory in process, January 1 balance 120,156 To complete inventory in process, January 1 S 0 14,923 X 14,923 X Cost of completed January 1 work in process 135,079 x Started and completed in January 1,387,490 X 614,108 X 2,001,598 x Transferred to finished goods in January 2,136,677 X Inventory in process, January 31 79,430 x 14,062.40 X 93,492.4 X Total costs assigned by the Cutting Department 2,230,169.4 X Feedback . 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 Decrease Amount Change in direct materials cost per equivalent unit Increase S 0.25 X Change in conversion cost per equivalent unit Increase S 0.14 x