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, 13,000 units 75% completed $131,950 Direct materials (13,000 X $7.60) $98,800 Conversion (13,000 x 75 x $3.40) 33,150 $131,950 Materials added during January from Weaving Department, 200,400 units $1,533,060 Direct labor for January 307,393 Factory overhead for January 375,702 Goods finished during January (includes goods in process, January 1). 202,000 units Work in process, January 31, 10,600 units, 20 completed 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 13,000 Unit Information Units charged to production: Inventory in process, January 1 Recelved from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: 200400 213.400 Equivalent Units Direct Materials Conversion Whole Units 13,000 0 3,250 189,800 175.000 175,000 X Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 175.000 X 178.250 X 20 800 10,600 10.600 2.120 213.400 Total units to be assigned cost 185,600 X 180,370 X Cost Information Cost per equivalent unit: Direct Materials Conversion 1.533,060 $ 6B3.095 Total costs for January in Cutting Department 185,600 Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 131.950 2.216.155 Costs incurred in January 2.348,105 131.950 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 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. Amount Increase or Decrease Increase 0.66 x Change in direct materials cost per equivalent unit Increase 0.39 X Change in conversion cost per equivalent unit