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, 8,400 units, 70% completed *Direct materials (8,400 x $8.80) $103,908* $73,920 Conversion (8,400 x 70% x $5.10) 29,988 $103,908 Materials added during January from Weaving Department, 129,200 units Direct labor for January $1,143,420 298,678 Factory overhead for January 365,050 Goods finished during January (includes goods in process, January 1), 130,800 units Work in process, January 31, 6,800 units, 40% 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 Units charged to production: Inventory in process, January 1 Unit Information Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: 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: Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: 8,400 129,200 137,600 Equivalent Units Whole Units Direct Materials Conversion 8,400 0 Direct Materials Conversion 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 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department Direct Total Materials Conversion 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. Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unit Increase or Decrease Amount $