EX $17-17$ Cost of Production Report

Obj. $2,4$

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 $1,1,400$ units, $75\%$ completed

$$22,{960}^{**}$

$*$Direct materials $(1,400$$$12\mathrm{.}65)$

Conversion $(1,40075\%$$$5\mathrm{.}00)$

Materials added during January from Weaving Department, $58,000$ units

Direct labor for January

Factory overhead for January

Goods finished during January $($includes goods in process, January $1),56,200$ units

Work in process, January $31,3,200$ units, $30\%$ completed

Details

a$.$ Prepare a cost of production report for 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$).$