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, 14,000 units, 60% completed		$145,040*
*Direct materials (14,000 $7.60)	$106,400
Conversion (14,000 60% $4.60)	38,640
	$145,040
Materials added during January from Weaving Department, 215,600 units		$1,660,120
Direct labor for January		432,925
Factory overhead for January		529,130
Goods finished during January (includes goods in process, January 1), 218,200 units
Work in process, January 31, 11,400 units, 35% completed

Question Content Area

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

Units charged to production:	Number of Units
Inventory in process, January 1	fill in the blank b367d409104fff2_1
Received from Weaving Department	fill in the blank b367d409104fff2_2
Total units accounted for by the Cutting Department	fill in the blank b367d409104fff2_3

Units to be assigned costs:	Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank b367d409104fff2_4	fill in the blank b367d409104fff2_5	fill in the blank b367d409104fff2_6
Started and completed in January	fill in the blank b367d409104fff2_7	fill in the blank b367d409104fff2_8	fill in the blank b367d409104fff2_9
Transferred to finished goods in January	fill in the blank b367d409104fff2_10	fill in the blank b367d409104fff2_11	fill in the blank b367d409104fff2_12
Inventory in process, January 31	fill in the blank b367d409104fff2_13	fill in the blank b367d409104fff2_14	fill in the blank b367d409104fff2_15
Total units to be assigned cost	fill in the blank b367d409104fff2_16	fill in the blank b367d409104fff2_17	fill in the blank b367d409104fff2_18

Cost per equivalent unit:	Direct Materials	Conversion
Total costs for January in Cutting Department	$fill in the blank b367d409104fff2_19	$fill in the blank b367d409104fff2_20
Total equivalent units	fill in the blank b367d409104fff2_21	fill in the blank b367d409104fff2_22
Cost per equivalent unit	$fill in the blank b367d409104fff2_23	$fill in the blank b367d409104fff2_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank b367d409104fff2_25
Costs incurred in January			fill in the blank b367d409104fff2_26
Total costs accounted for by the Cutting Department			$fill in the blank b367d409104fff2_27
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank b367d409104fff2_28
To complete inventory in process, January 1	$fill in the blank b367d409104fff2_29	$fill in the blank b367d409104fff2_30	fill in the blank b367d409104fff2_31
Cost of completed January 1 work in process			$fill in the blank b367d409104fff2_32
Started and completed in January	fill in the blank b367d409104fff2_33	fill in the blank b367d409104fff2_34	fill in the blank b367d409104fff2_35
Transferred to finished goods in January			$fill in the blank b367d409104fff2_36
Inventory in process, January 31	fill in the blank b367d409104fff2_37	fill in the blank b367d409104fff2_38	fill in the blank b367d409104fff2_39
Total costs assigned by the Cutting Department			$fill in the blank b367d409104fff2_40

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Feedback

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?

Question Content Area

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	DecreaseIncrease	$fill in the blank ed0b2ff7d01ffc2_2
Change in conversion cost per equivalent unit	DecreaseIncrease	$fill in the blank ed0b2ff7d01ffc2_4