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, 12,200 units, 65% completed		$139,995*
*Direct materials (12,200 $9.2)	$112,240
Conversion (12,200 65% $3.5)	27,755
	$139,995
Materials added during January from Weaving Department, 188,000 units		$1,748,400
Direct labor for January		284,228
Factory overhead for January		347,390
Goods finished during January (includes goods in process, January 1), 190,200 units
Work in process, January 31, 10,000 units, 35% 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 unitcomputations, 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: Whole Units Equivalent 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 costs Cost Information Costs 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 Cost 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 . Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December). If equired, 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