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.

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	fill in the blank	$fill in the blank
Change in conversion cost per equivalent unit	fill in the blank	$fill in the blank