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, 7,200 units, 65% completed $82,440* *Direct materials (7,200 x $8.2) $59,040 Conversion (7,200 x 65% x $5) 23,400 $82,440 Materials added during January from Weaving Department, 110,800 units Direct labor for January Factory overhead for January Goods finished during January (includes goods in process, January 1), 112,200 units Work in process, January 31, 5,800 units, 35% completed $919,640 251,417 307,288 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 Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: Equivalent Units Direct Materials Whole Units Conversion 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 Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Cutting Department 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 Feedback Check My Work 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, ost, 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 compete 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 cost per equivalent unit for direct materials and conversion from the previous month (Decernber). If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unit Feedback Check My Work b. Compare the costs per equivalent unit for December and January. The December costs per equivalent unit for materials and conversion are in the January 1 work in process inventory Feedback Check My Vvork Incorrect 4 more Check My Work uses remaining