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, 10,800 units, 55% completed $133,758* *Direct materials (10,800 $9.8)$105,840 Conversion (10,800 55% $4.7)27,918 $133,758 Materials added during January from Weaving Department, 166,400 units $1,639,040Direct labor for January 356,616Factory overhead for January 435,864Goods finished during January (includes goods in process, January 1), 168,400 units Work in process, January 31, 8,800 units, 30% completed

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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

Units charged to production:Number of UnitsInventory in process, January 1 Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs:Equivalent Units Whole UnitsDirect MaterialsConversionInventory 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 per equivalent unit:Direct MaterialsConversion Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Direct MaterialsConversionTotalInventory 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 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department

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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 DecreaseAmountChange in direct materials cost per equivalent unit Change in conversion cost per equivalent unit