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 $179,962 Direct materials (13,400 x $10.00) $134,000 Conversion (13,400 x 70% * $4.90) 45,962 $179,962 Materials added during January from Weaving Department, 206,400 units $2,094,960 Direct labor for January 440,251 Factory overhead for January 538,085 Goods finished during January (Includes goods in process, January 1), 208,800 units Work in process, January 31, 11,000 units, 40% completed a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in 'O" 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 13.400 Received from Weaving Department 206,400 219.00 Total units accounted for by the Cutting Department Units to be assigned costs Total units accounted for by the Cutting Department Units to be assigned costs: 219.00 Whole Units Equivalent Units Direct Materials Conversion Inventory in process, January 1 13.400 Started and completed in January 4,020 195.400 195,400 195,400 Transferred to finished goods in January Inventory in process, January 31 208.800 195,400 199,420 11,000 11,000 4,400 Total units to be assigned cost 219,00 206,400 203,120 Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department Total equivalent units 2,094.960 978,336 203,830 206,400 Cost per equivalent unit 10.15 48 Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 Costs incurred in January 179,962 Total costs accounted for by the Cutting Department Costs allocated to completed and partially completed units: Materials Inventory in process, January 1 179,962 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 110 Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department 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 complete to transfer to the next department? Did these units require more material cost or more conversion cost? How 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 added in the process? How complete are the unitsin 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 equivalent units. Are the numbers 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). If required, round your answers to two decimal places