The Cutting Department of Karachi Carpet Company provides the following data for January 2016. Assume that all materials are added at the beginning of the process.

Work in process, January 1, 1,400 units, 75% completed			$22,960*
	*Direct materials (1,400 X $12.65)	$17,710
	Conversion (1,400 X 75% X $5.00)	5,250
	$22,960
Materials added during January from Weaving Department, 58,000 units			$742,400
Direct labor for January			134,550
Factory overhead for January			151,611
Goods finished during January (includes goods in process, January 1), 56,200 units
Work in process, January 31, 3,200 units, 30% completed

X Part A: Cost of Production Report

a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For thecost per equivalent unitcomputations, round your answers to two decimal places.

Karachi Carpet Company
Cost of Production ReportCutting Department
For the Month Ended January 31, 2016
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 costs
Cost Information
Costs 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	$
Cost 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	$

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	Increase	$
Change in conversion cost per equivalent unit	Increase	$

b. Compare the costs per equivalent unit for December and January. The December costs per equivalent unit for materials and conversion are in the January 1 work in process inventory.