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, 9,600 units, 60% completed		$108,480*
*Direct materials (9,600 $9.2)	$88,320
Conversion (9,600 60% $3.5)	20,160
	$108,480
Materials added during January from Weaving Department, 148,000 units		$1,376,400
Direct labor for January		225,155
Factory overhead for January		275,189
Goods finished during January (includes goods in process, January 1), 149,800 units
Work in process, January 31, 7,800 units, 40% 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
Received from Weaving Department			fill in the blank
Total units accounted for by the Cutting Department			fill in the blank
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank	fill in the blank	fill in the blank
Started and completed in January	fill in the blank	fill in the blank	fill in the blank
Transferred to finished goods in January	fill in the blank	fill in the blank	fill in the blank
Inventory in process, January 31	fill in the blank	fill in the blank	fill in the blank
Total units to be assigned costs	fill in the blank	fill in the blank	fill in the blank
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		$fill in the blank	$fill in the blank
Total equivalent units		fill in the blank	fill in the blank
Cost per equivalent unit		$fill in the blank	$fill in the blank
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank
Costs incurred in January			fill in the blank
Total costs accounted for by the Cutting Department			$fill in the blank
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank
To complete inventory in process, January 1		$fill in the blank	fill in the blank
Cost of completed January 1 work in process			$fill in the blank
Started and completed in January	$fill in the blank	fill in the blank	fill in the blank
Transferred to finished goods in January			$fill in the blank
Inventory in process, January 31	fill in the blank	fill in the blank	fill in the blank
Total costs assigned by the Cutting Department			$fill in the blank

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
Change in conversion cost per equivalent unit		$fill in the blank