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, 8,200 units, 70% completed		$95,530*
*Direct materials (8,200 $7.8)	$63,960
Conversion (8,200 70% $5.5)	31,570
	$95,530
Materials added during January from Weaving Department, 126,400 units		$998,560
Direct labor for January		311,018
Factory overhead for January		380,134
Goods finished during January (includes goods in process, January 1), 127,800 units
Work in process, January 31, 6,800 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:
Inventory in process, January 1			fill in the blank 1ceaf1019fd4ff2_1
Received from Weaving Department			fill in the blank 1ceaf1019fd4ff2_2
Total units accounted for by the Cutting Department			fill in the blank 1ceaf1019fd4ff2_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank 1ceaf1019fd4ff2_4	fill in the blank 1ceaf1019fd4ff2_5	fill in the blank 1ceaf1019fd4ff2_6
Started and completed in January	fill in the blank 1ceaf1019fd4ff2_7	fill in the blank 1ceaf1019fd4ff2_8	fill in the blank 1ceaf1019fd4ff2_9
Transferred to finished goods in January	fill in the blank 1ceaf1019fd4ff2_10	fill in the blank 1ceaf1019fd4ff2_11	fill in the blank 1ceaf1019fd4ff2_12
Inventory in process, January 31	fill in the blank 1ceaf1019fd4ff2_13	fill in the blank 1ceaf1019fd4ff2_14	fill in the blank 1ceaf1019fd4ff2_15
Total units to be assigned costs	fill in the blank 1ceaf1019fd4ff2_16	fill in the blank 1ceaf1019fd4ff2_17	fill in the blank 1ceaf1019fd4ff2_18
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		$fill in the blank 1ceaf1019fd4ff2_19	$fill in the blank 1ceaf1019fd4ff2_20
Total equivalent units		fill in the blank 1ceaf1019fd4ff2_21	fill in the blank 1ceaf1019fd4ff2_22
Cost per equivalent unit		$fill in the blank 1ceaf1019fd4ff2_23	$fill in the blank 1ceaf1019fd4ff2_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank 1ceaf1019fd4ff2_25
Costs incurred in January			fill in the blank 1ceaf1019fd4ff2_26
Total costs accounted for by the Cutting Department			$fill in the blank 1ceaf1019fd4ff2_27
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank 1ceaf1019fd4ff2_28
To complete inventory in process, January 1		$fill in the blank 1ceaf1019fd4ff2_29	fill in the blank 1ceaf1019fd4ff2_30
Cost of completed January 1 work in process			$fill in the blank 1ceaf1019fd4ff2_31
Started and completed in January	$fill in the blank 1ceaf1019fd4ff2_32	fill in the blank 1ceaf1019fd4ff2_33	fill in the blank 1ceaf1019fd4ff2_34
Transferred to finished goods in January			$fill in the blank 1ceaf1019fd4ff2_35
Inventory in process, January 31	fill in the blank 1ceaf1019fd4ff2_36	fill in the blank 1ceaf1019fd4ff2_37	fill in the blank 1ceaf1019fd4ff2_38
Total costs assigned by the Cutting Department			$fill in the blank 1ceaf1019fd4ff2_39

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.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$fill in the blank 24688100c038065_2
Change in conversion cost per equivalent unit		$fill in the blank 24688100c038065_4