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, 9,000 units, 70% completed		$94,860*
*Direct materials (9,000 $7.6)	$68,400
Conversion (9,000 70% $4.2)	26,460
	$94,860
Materials added during January from Weaving Department, 138,800 units		$1,068,760
Direct labor for January		262,347
Factory overhead for January		320,647
Goods finished during January (includes goods in process, January 1), 140,400 units
Work in process, January 31, 7,400 units, 20% completed

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 9,000 Received from Weaving Department 138,000 x Total units accounted for by the Cutting Department 147,000 X Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 9,000 0 0 x Started and completed in January 131,400 131,400 131,400 Transferred to finished goods in January 140,400 0 X 0 X Inventory in process, January 31 9,000 x 9,000 X 0 x 0 Total units to be assigned cost x 122,400 x Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department 1,068,760 ols assigned to pr 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 64,800 X Cost of completed January 1 work in process Started and completed in January III Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department 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 Increase