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, 13,800 units, 75% completed		$155,940*
*Direct materials (13,800 $8)	$110,400
Conversion (13,800 75% $4.4)	45,540
	$155,940
Materials added during January from Weaving Department, 212,400 units		$1,731,060
Direct labor for January		423,245
Factory overhead for January		517,300
Goods finished during January (includes goods in process, January 1), 214,800 units
Work in process, January 31, 11,400 units, 40% 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 Units
Inventory in process, January 1		fill in the blank a17439ff7f8d07b_1
Received from Weaving Department		fill in the blank a17439ff7f8d07b_2
Total units accounted for by the Cutting Department		fill in the blank a17439ff7f8d07b_3

Units to be assigned costs:	Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank a17439ff7f8d07b_4	fill in the blank a17439ff7f8d07b_5	fill in the blank a17439ff7f8d07b_6
Started and completed in January	fill in the blank a17439ff7f8d07b_7	fill in the blank a17439ff7f8d07b_8	fill in the blank a17439ff7f8d07b_9
Transferred to finished goods in January	fill in the blank a17439ff7f8d07b_10	fill in the blank a17439ff7f8d07b_11	fill in the blank a17439ff7f8d07b_12
Inventory in process, January 31	fill in the blank a17439ff7f8d07b_13	fill in the blank a17439ff7f8d07b_14	fill in the blank a17439ff7f8d07b_15
Total units to be assigned costs	fill in the blank a17439ff7f8d07b_16	fill in the blank a17439ff7f8d07b_17	fill in the blank a17439ff7f8d07b_18

Costs per equivalent unit:	Direct Materials	Conversion
Total costs for January in Cutting Department	$fill in the blank a17439ff7f8d07b_19	$fill in the blank a17439ff7f8d07b_20
Total equivalent units	fill in the blank a17439ff7f8d07b_21	fill in the blank a17439ff7f8d07b_22
Cost per equivalent unit	$fill in the blank a17439ff7f8d07b_23	$fill in the blank a17439ff7f8d07b_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank a17439ff7f8d07b_25
Costs incurred in January			fill in the blank a17439ff7f8d07b_26
Total costs accounted for by the Cutting Department			$fill in the blank a17439ff7f8d07b_27
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank a17439ff7f8d07b_28
To complete inventory in process, January 1		$fill in the blank a17439ff7f8d07b_29	fill in the blank a17439ff7f8d07b_30
Cost of completed January 1 work in process			$fill in the blank a17439ff7f8d07b_31
Started and completed in January	$fill in the blank a17439ff7f8d07b_32	fill in the blank a17439ff7f8d07b_33	fill in the blank a17439ff7f8d07b_34
Transferred to finished goods in January			$fill in the blank a17439ff7f8d07b_35
Inventory in process, January 31	fill in the blank a17439ff7f8d07b_36	fill in the blank a17439ff7f8d07b_37	fill in the blank a17439ff7f8d07b_38
Total costs assigned by the Cutting Department			$fill in the blank a17439ff7f8d07b_39

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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	DecreaseIncrease	$fill in the blank c1ab08ffa00a06a_2
Change in conversion cost per equivalent unit	DecreaseIncrease	$fill in the blank c1ab08ffa00a06a_4

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