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, 11,400 units, 60% completed		$138,852*
*Direct materials (11,400 $9.00)	$102,600
Conversion (11,400 60% $5.30)	36,252
	$138,852
Materials added during January from Weaving Department, 175,600 units		$1,606,740
Direct labor for January		409,477
Factory overhead for January		500,471
Goods finished during January (includes goods in process, January 1), 177,600 units
Work in process, January 31, 9,400 units, 45% 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 3b78d4fa4fe4fae_1
Received from Weaving Department			fill in the blank 3b78d4fa4fe4fae_2
Total units accounted for by the Cutting Department			fill in the blank 3b78d4fa4fe4fae_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank 3b78d4fa4fe4fae_4	fill in the blank 3b78d4fa4fe4fae_5	fill in the blank 3b78d4fa4fe4fae_6
Started and completed in January	fill in the blank 3b78d4fa4fe4fae_7	fill in the blank 3b78d4fa4fe4fae_8	fill in the blank 3b78d4fa4fe4fae_9
Transferred to finished goods in January	fill in the blank 3b78d4fa4fe4fae_10	fill in the blank 3b78d4fa4fe4fae_11	fill in the blank 3b78d4fa4fe4fae_12
Inventory in process, January 31	fill in the blank 3b78d4fa4fe4fae_13	fill in the blank 3b78d4fa4fe4fae_14	fill in the blank 3b78d4fa4fe4fae_15
Total units to be assigned cost	fill in the blank 3b78d4fa4fe4fae_16	fill in the blank 3b78d4fa4fe4fae_17	fill in the blank 3b78d4fa4fe4fae_18
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		$fill in the blank 3b78d4fa4fe4fae_19	$fill in the blank 3b78d4fa4fe4fae_20
Total equivalent units		fill in the blank 3b78d4fa4fe4fae_21	fill in the blank 3b78d4fa4fe4fae_22
Cost per equivalent unit		$fill in the blank 3b78d4fa4fe4fae_23	$fill in the blank 3b78d4fa4fe4fae_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank 3b78d4fa4fe4fae_25
Costs incurred in January			fill in the blank 3b78d4fa4fe4fae_26
Total costs accounted for by the Cutting Department			$fill in the blank 3b78d4fa4fe4fae_27
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank 3b78d4fa4fe4fae_28
To complete inventory in process, January 1	$fill in the blank 3b78d4fa4fe4fae_29	$fill in the blank 3b78d4fa4fe4fae_30	fill in the blank 3b78d4fa4fe4fae_31
Cost of completed January 1 work in process			$fill in the blank 3b78d4fa4fe4fae_32
Started and completed in January	fill in the blank 3b78d4fa4fe4fae_33	fill in the blank 3b78d4fa4fe4fae_34	fill in the blank 3b78d4fa4fe4fae_35
Transferred to finished goods in January			$fill in the blank 3b78d4fa4fe4fae_36
Inventory in process, January 31	fill in the blank 3b78d4fa4fe4fae_37	fill in the blank 3b78d4fa4fe4fae_38	fill in the blank 3b78d4fa4fe4fae_39
Total costs assigned by the Cutting Department			$fill in the blank 3b78d4fa4fe4fae_40

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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 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 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.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	$fill in the blank 631e6ffb3fbffb5_2
Change in conversion cost per equivalent unit	Decrease	$fill in the blank 631e6ffb3fbffb5_4

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b. Compare the costs per equivalent unit for December and January. The December costs per equivalent unit for materials and conversion are in the January 1 work in process inventory.

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Partially correct