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, 11,400 units, 55% completed		$126,654*
*Direct materials (11,400 $8.80)	$100,320
Conversion (11,400 55% $4.20)	26,334
	$126,654
Materials added during January from Weaving Department, 175,600 units		$1,571,620
Direct labor for January		339,709
Factory overhead for January		415,199
Goods finished during January (includes goods in process, January 1), 177,600 units
Work in process, January 31, 9,400 units, 45% 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
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct 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	$fill in the blank d288190c0074fd3_29	$fill in the blank d288190c0074fd3_30
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

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
Change in conversion cost per equivalent unit