Department of Accounting and Finance

INTRODUCTORY ACCOUNTING COBU 202. SUMMER 2023 INDIVIDUAL PROJECT

The Cutting Department of Petersburg 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, 1,400 units, 75% completed $ 22,960 Direct materials (1,400 X $12.65)$17,710 Conversion (1,400 X 75% X $5.00)5,250 $22,960 Materials added during January from Weaving Department, 58,000 units. $742,400Direct labor for January 134,550Factory overhead for January 151,611Goods finished during January (includes goods in process, January 1), 56,200 units Work in process, January 31, 3,200 units, 30% completed

Requirement

1. As the cost accountant/manager, prepare a cost of production report for the Cutting Department.

1. Considering the current economic condition, would you recommend your company outsource the raw materials from China or get them from the U.S. Explain the reason for your decision.