Kalachi Calpet Company Cost of Production Report-Cutting Department For the Month Ended January 31 Unit Information Units charged to production: Inventory in process, January 1 9,600 148,000 Received from Weaving Department Total units accounted for by the Cutting Department 157,600 Units to be assigned costs: Whole Units 9,600 Equivalent Units Direct Materials Conversion o 1,920 Inventory in process, January 1 Started and completed in January 140,200 140,200 140,200 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 $ Conversion 840,130 144,850 V Total equivalent units 9.05 5.8 Cost per equivalent unit Carte scrioned to production: 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 $9) Conversion (9,600 x 80% $5.7) $86,400 43,776 $130,176 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 $1,339,400 378,059 462,071 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 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 1 132,400 X 132,400 Cost of completed January 1 work in process 112,896 Started and completed in January 140,200 140,200 x Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department Feedback 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. Increase or Decrease Amount Change in direct materials cost per equivalent unit Increase Change in conversion cost per equivalent unit Increase Feedback Check My Work b. Compare the costs per equivalent unit for December and January. The December costs per equivalent unit for materials and conversion are in the January 1 work in process inventory