neurt 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, 10,200 units, 80% completed $112,608 *Direct materials (10,200 x $8.4) $85,680 Conversion (10,200 x 80% * $3.3) 26,928 $112,608 Materials added during January from Weaving Department, 157,200 units $1,336,200 Direct labor for January 221,443 Factory overhead for January 270,653 Goods finished during January (Includes goods in process, January 1), 159,000 units Work in process, January 31, 8,400 units, 35% completed a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in 'O'. 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 Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: Whole Units Equivalent Units Direct Materials Conversion Units Materials Conversion Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total units to be assigned cost Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Cutting Department Costs allocated to completed and partially completed units: Inventory in process, January 1 balance To complete inventory in process, January 1 Cost of completed January 1 work in process Cartad and commited in a Previous LUIS dudly Total costs accounted for by the Cutting Department Costs allocated to completed and partially completed units! Inventory in process, January 1 balance To complete inventory in process, January 1 Cost of completed January 1 work in process Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department Fondback Check y Work a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complote 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 ording inventory with rospect to materials? How compete 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? b. Compute and evaluate the change in cost 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 Decrease Feedback