Inventory in process, January 1 Started and completed in January Whole Units 9,600 140,200 Equivalent Units Direct Materials Conversion 1,920 140,200 140,200 Transferred to finished goods in January 149,800 140,200 142,120 Inventory in process, January 31 7,800 7,800 2,730 Total units to be assigned costs 157,600 148,000 144,850 Cost Information Costs per equivalent unit: Total costs for January in Cutting Department $ Direct Materials $ 1,339,400 148,000 9.05 Conversion 840,130 144,850 5.8 Total equivalent units $ Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 130,176 Costs incurred in January 2,179,530 2,309,706 Total costs accounted for by the Cutting Department Cost allocated to completed and partially completed units: Inventory in process, January 1 balance 130,176 11,136 To complete inventory in process, January 1 11,136 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. $130,176* Work in process, January 1, 9,600 units, 80% completed *Direct materials (9,600 x $9) Conversion (9,600 x 80% x $5.7) $86,400 43,776 $130,176 $1,339,400 378,059 Materials added during January from Weaving Department, 148,000 units Direct labor for January Factory overhead for January Goods finished during January (includes goods in process, January 1), 149,800 units Work in process, January 31, 7,800 units, 35% completed 462,071 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 9,600 Received from Weaving Department 148,000 Total units accounted for by the Cutting Department 157,600 Direct Materials Conversion Total Inventory in process, January 1 130,176 Costs incurred in January 2,179,530 2,309,706 Total costs accounted for by the Cutting Department Cost allocated to completed and partially completed units: Inventory in process, January 1 balance 130,176 To complete inventory in process, January 1 11,136 11,136 Cost of completed January 1 work in process 141,312 Started and completed in January $ 1,268,810 813,160 2,081,970 Transferred to finished goods in January $ 2,223,282 Inventory in process, January 31 70,590 15,834 86,424 Total costs assigned by the Cutting Department $ 2,309,706 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, in terms of cost, 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 complete 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