Cost of Production Report

The Cutting Department of Tangu Carpet Company provides the following data for December 2014. Assume that all materials are added at the beginning of the process.

Work in process, December 1, 12,600 units, 70% completed		$171,234*
*Direct materials (12,600 $9.60)	$120,960
Conversion (12,600 70% $5.70)	50,274
	$171,234
Materials added during December from Weaving Department, 194,000 units		$1,901,200
Direct labor for December		505,778
Factory overhead for December		618,172
Goods finished during December (includes goods in process, December 1), 196,200 units
Work in process, December 31, 10,400 units, 30% completed

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.

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (November). 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