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.

Line Item Description Amount Amount

Work in process, January $1,10,600$ units, $60\%$ completed $$126,988*$

$*$Direct materials $(10,600\backslash$times $$10\mathrm{.}00)$ $$106,000$

Conversion $(10,600\backslash$times $60\%\backslash$times $$3\mathrm{.}30)20,988$

Total $$126,988$

Materials added during January from Weaving Department, $163,200$ units $$1,648,320$

Direct labor for January $234,302$

Factory overhead for January $286,370$

Goods finished during January $($includes goods in process, January $1),165,200$ units $$

Work in process, January $31,8,600$ 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 $31$

Units Whole Units Equivalent Units

Direct Materials Equivalent Units

Conversion

Units charged to production:

Inventory in process, January $1$ fill in the blank $1$

Received from Weaving Department fill in the blank $2$

Total units accounted for by the Cutting Department fill in the blank $3$

Units to be assigned costs:

Inventory in process, January $1$ fill in the blank $4$

fill in the blank $5$

fill in the blank $6$

Started and completed in January fill in the blank $7$

fill in the blank $8$

fill in the blank $9$

Transferred to finished goods in January fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

Inventory in process, January $31$ fill in the blank $13$

fill in the blank $14$

fill in the blank $15$

Total units to be assigned costs fill in the blank $16$

fill in the blank $17$

fill in the blank $18$

Costs

Costs Direct Materials Conversion Total Costs

Cost per equivalent unit:

Total costs for January in Cutting Department $fill in the blank $19$

$fill in the blank $20$

Total equivalent units fill in the blank $21$

fill in the blank $22$

Cost per equivalent unit $fill in the blank $23$

$fill in the blank $24$

Costs assigned to production:

Inventory in process, January $1$ $fill in the blank $25$

Costs incurred in January fill in the blank $26$

Total costs accounted for by the Cutting Department $fill in the blank $27$

Cost allocated to completed and partially completed units:

Inventory in process, January $1$ balance $fill in the blank $28$

To complete inventory in process, January $1$ $fill in the blank $29$

$fill in the blank $30$

fill in the blank $31$

Cost of completed January $1$ work in process $fill in the blank $32$

Started and completed in January fill in the blank $33$

fill in the blank $34$

fill in the blank $35$

Transferred to finished goods in January $fill in the blank $36$

Inventory in process, January $31$ fill in the blank $37$

fill in the blank $38$

fill in the blank $39$

Total costs assigned by the Cutting Department $fill in the blank $40$

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.

Line Item Description Increase or Decrease Amount

Change in direct materials cost per equivalent unit

$fill in the blank $42$

Change in conversion cost per equivalent unit

$fill in the blank $44$