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, 13,600 units, 60% completed		$151,232*
*Direct materials (13,600 $8)	$108,800
Conversion (13,600 60% $5.2)	42,432
	$151,232
Materials added during January from Weaving Department, 209,600 units		$1,697,760
Direct labor for January		479,380
Factory overhead for January		585,908
Goods finished during January (includes goods in process, January 1), 212,000 units
Work in process, January 31, 11,200 units, 45% completed

a. Prepare a cost of production report for the Cutting Department. If an amount box does not require an entry, leave it blank. 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 f80f0c014059075_1
Received from Weaving Department			fill in the blank f80f0c014059075_2
Total units accounted for by the Cutting Department			fill in the blank f80f0c014059075_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank f80f0c014059075_4	fill in the blank f80f0c014059075_5	fill in the blank f80f0c014059075_6
Started and completed in January	fill in the blank f80f0c014059075_7	fill in the blank f80f0c014059075_8	fill in the blank f80f0c014059075_9
Transferred to finished goods in January	fill in the blank f80f0c014059075_10	fill in the blank f80f0c014059075_11	fill in the blank f80f0c014059075_12
Inventory in process, January 31	fill in the blank f80f0c014059075_13	fill in the blank f80f0c014059075_14	fill in the blank f80f0c014059075_15
Total units to be assigned costs	fill in the blank f80f0c014059075_16	fill in the blank f80f0c014059075_17	fill in the blank f80f0c014059075_18
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		$fill in the blank f80f0c014059075_19	$fill in the blank f80f0c014059075_20
Total equivalent units		fill in the blank f80f0c014059075_21	fill in the blank f80f0c014059075_22
Cost per equivalent unit		$fill in the blank f80f0c014059075_23	$fill in the blank f80f0c014059075_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank f80f0c014059075_25
Costs incurred in January			fill in the blank f80f0c014059075_26
Total costs accounted for by the Cutting Department			$fill in the blank f80f0c014059075_27
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank f80f0c014059075_28
To complete inventory in process, January 1		$fill in the blank f80f0c014059075_29	fill in the blank f80f0c014059075_30
Cost of completed January 1 work in process			$fill in the blank f80f0c014059075_31
Started and completed in January	$fill in the blank f80f0c014059075_32	fill in the blank f80f0c014059075_33	fill in the blank f80f0c014059075_34
Transferred to finished goods in January			$fill in the blank f80f0c014059075_35
Inventory in process, January 31	fill in the blank f80f0c014059075_36	fill in the blank f80f0c014059075_37	fill in the blank f80f0c014059075_38
Total costs assigned by the Cutting Department			$fill in the blank f80f0c014059075_39

Feedback

a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to 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 number 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). When the answer is an increase enter it as a positive number and when it's a decrease enter it as a negative number. 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 d3a14d039ff7036_2
Change in conversion cost per equivalent unit	Decrease	$fill in the blank d3a14d039ff7036_4