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 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 12.00 Received from Weaving Department 206.400 219.500 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: 219,800 Whole Units Equivalent Units Direct Materials Conversion 0 4,020 13,400 195,400 195.400 195.400 Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total units to be assigned cost 208.800 195,400 199,420 11,000 11,000 4,400 219,800 206,400 203,820 Cost Information Cost per equivalent unit: Direct Materials Conversion 2,094,960 978,336 206,400 203,820 Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: 10.15 4.8 Direct Materials Conversion Total 179,962 Inventory in process, January 1 Costs incurred in January end Total costs accounted for by the Cutting Department Costs allocated to completed and partially completed units: 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 Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department III Feedback Check My Work a. How much more (percentage amount) needed 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 completo 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 Increase 0.150 Change in direct materials cost per equivalent unit Change in conversion cost per equivalentunit Decrease -0.1