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, 12,600 units, 65% completed $126,756* Direct materials (12,600 x $7.20) $90,720 Conversion (12,600 x 65% x $4.40) 36,036 $126,756 Materials added during January from Weaving Department, 194,000 units Direct labor for January Factory overhead for January $1,416,200 384,932 470,473 Goods finished during January (includes goods in process, January 1), 196,200 units Work in process, January 31, 10,400 units, 20% 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: 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: 12,600 183,600 196,200 Equivalent Units Whole Units Direct Materials: Conversion Inventory in process, January 1 12,600 4,410 Started and completed in January 183,600 183,600 183,600 Transferred to finished goods in January 196,200 Inventory in process, January 31 0 0 Total units to be assigned cost 183,600 183,600 Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Direct Materials Conversion 194,000 183,600 1.056 Costs assigned to production: Direct Materials Conversion 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 Total 126,756 0 0 0 0 0 0 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 11 Cost of completed January 1 work in process Started and completed in January Transferred to finished goods in January Inventory in process, January 31 DITELL Materials Conversion 0 0 0 Total 126,756 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. Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unit Increase or Decrease Increase Decrease Amount