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, 13,400 units, 70% completed		$152,760*
*Direct materials (13,400 $8.60)	$115,240
Conversion (13,400 70% $4.00)	37,520
	$152,760
Materials added during January from Weaving Department, 206,400 units		$1,785,360
Direct labor for January		355,774
Factory overhead for January		434,834
Goods finished during January (includes goods in process, January 1), 208,800 units
Work in process, January 31, 11,000 units, 30% completed

Question Content Area

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 r13,400206,400 Units to be assigned costs: Equivalent Units Inventory in process, January 1 Transferred to finished goods in January Inventory in process, January 31 Total units to be assigned cost Direct Materials Conversion Started and completed in January 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