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, 9,200 units, 55% completed$100,694**Direct materials (9,200 $8.8)$80,960Conversion (9,200 55% $3.9)19,734$100,694Materials added during January from Weaving Department, 141,600 units$1,267,320Direct labor for January252,756Factory overhead for January308,924Goods finished during January (includes goods in process, January 1), 143,200 unitsWork in process, January 31, 7,600 units, 30% completedcost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the The rate used to allocate costs between completed and partially completed production.cost per equivalent unit computations, round your answers to two decimal places.

Karachi Carpet CompanyCost of Production Report-Cutting DepartmentFor the Month Ended January 31Unit Information Units charged to production: Inventory in process, January 1Received from Weaving DepartmentTotal units accounted for by the Cutting DepartmentUnits to be assigned costs: Equivalent UnitsWhole UnitsDirect MaterialsConversionInventory in process, January 1Started and completed in JanuaryTransferred to finished goods in JanuaryInventory in process, January 31Total units to be assigned costCost Information Costs per equivalent unit: Direct MaterialsConversionTotal costs for January in Cutting Department$$Total equivalent unitsCost per equivalent unit$$Costs assigned to production: Direct MaterialsConversionTotalInventory in process, January 1$Costs incurred in JanuaryTotal costs accounted for by the Cutting Department$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$Inventory in process, January 31Total costs assigned by the Cutting Department$

Feedback

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 DecreaseAmountChange in direct materials cost per equivalent unitDecrease
• Increase
• $Change in conversion cost per equivalent unitDecrease
• Increase

$