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, 10,000 units, 75% completed $130,000* *Direct materials (10,000 x $9.4) $94,000 Conversion (10,000 x 75% x $4.8) 36,000 $130,000 Materials added during January from Weaving Department, 154,000 units Direct labor for January $1,470,700 317,990 Factory overhead for January Goods finished during January (includes goods in process, January 1), 155,800 units Work in process, January 31, 8,200 units, 25% completed 388,655 Cost Information Costs per equivalent unit: Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: 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 Inventory in process, January 31 Total costs assigned by the Cutting Department Direct Materials Conversion. Direct Total Materials Conversion