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. $178,704 Work in process, January 1, 14,600 units, 80% completed *Direct materials (14,600 x $8.4) Conversion (14,600 x 80% $4.8) $122,640 56,064 $178,704 $1,922,040 467,069 Materials added during January from Weaving Department, 224,800 units Direct labor for January Factory overhead for January Goods finished during January (Includes goods in process, January 1), 227,400 units Work in process, January 31, 12,000 units, 45% completed 571,595 3. 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. a. 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: 14.600 Inventory in process, January 1 Received from Weaving Department 224,000 Total units accounted for by the cutting Department 239400 Units to be assigned costs Equivalent Units Whole Units Direct Materials Conversion 14,600 0 2.920 212.800 212.800 212,800 212,800 227.400 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 costs 215,720 12.000 12,000 5.400 239.400 224,800 221.120 Cost Information Gosts per equivalent unit: Costs per equivalent unit: Direct Materials Conversion 1.922,040 1.039.264 Total costs for January in Cutting Department 224,800 221.120 Total equivalent units 8.55 4.7 Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total 178,704 24,966 X Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Cutting Department Cost 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 JJ DITURE III Total costs assigned by the Cutting Department 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 Change in conversion cost per equivalent unit Decrease