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, 12,400 units, 65% completed *Direct materials (12,400 x $10.4) $174,902* $128,960 Conversion (12,400 x 65% x $5.7) 45,942 $174,902 Materials added during January from Weaving Department, 190,800 units Direct labor for January Factory overhead for January $2,003,400 471,190 575,898 Goods finished during January (includes goods in process, January 1), 193,000 units Work in process, January 31, 10,200 units, 20% completed a. Prepare a cost of production report for the Cutting Department. If an amount box does not require an entry, leave it blank. 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 Units charged to production: Inventory in process, January 1 Unit Information Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: 12,400 190,800 203,200 Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 12,400 0 4,340 Started and completed in January 180,600 180,600 180,600 a. Prepare a cost of production report for the Cutting Department. If an amount box does not require an entry, leave it blank. 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 Units charged to production: Inventory in process, January 1 Unit Information Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: 12,400 190,800 203,200 Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 12,400 4,340 Started and completed in January 180,600 180,600 180,600 Transferred to finished goods in January 193,000 180,600 184,940 Inventory in process, January 31 10,200 10,200 2,040 Total units to be assigned costs 203,200 190,800 186,980 Cost Information Costs per equivalent unit: Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion 2,003,400 471,190 X 109,800 X 186,980 10.50 2.52 x Costs assigned to production: Direct Materials Conversion Total 174,902 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 2,474,590 X 2,649,492 X 174,902 0 X 10,936.80 X 1,896,300 455,112 X 185,838.80 X 2,351,412 X Inventory in process, January 31 130,200 X 31,248 X 2,537,250.80 X 161,448 X Total costs assigned by the Cutting Department 2,649,492.80 Feedback Check My Work a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials process? How complete are the units in ending inventory with respect to materials? How complete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equival the number of equivalent units the same for materials and conversion? b. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December). When the answer is an increase enter it as a positive number and when it's a decrease enter number. If required, round your answers to two decimal places. Increase or Decrease Amount