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, 10,400 units, 75% completed		$145,340*
*Direct materials (10,400 $10.6)	$110,240
Conversion (10,400 75% $4.5)	35,100
	$145,340
Materials added during January from Weaving Department, 160,000 units		$1,720,000
Direct labor for January		325,011
Factory overhead for January		397,235
Goods finished during January (includes goods in process, January 1), 161,800 units
Work in process, January 31, 8,600 units, 35% completed

a. Prepare a cost of production report for the Cutting Department. If an amount box does not require an entry, leave it blank. 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			fill in the blank 206dc4fa5073f82_1
Received from Weaving Department			fill in the blank 206dc4fa5073f82_2
Total units accounted for by the Cutting Department			fill in the blank 206dc4fa5073f82_3
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	fill in the blank 206dc4fa5073f82_4	fill in the blank 206dc4fa5073f82_5	fill in the blank 206dc4fa5073f82_6
Started and completed in January	fill in the blank 206dc4fa5073f82_7	fill in the blank 206dc4fa5073f82_8	fill in the blank 206dc4fa5073f82_9
Transferred to finished goods in January	fill in the blank 206dc4fa5073f82_10	fill in the blank 206dc4fa5073f82_11	fill in the blank 206dc4fa5073f82_12
Inventory in process, January 31	fill in the blank 206dc4fa5073f82_13	fill in the blank 206dc4fa5073f82_14	fill in the blank 206dc4fa5073f82_15
Total units to be assigned costs	fill in the blank 206dc4fa5073f82_16	fill in the blank 206dc4fa5073f82_17	fill in the blank 206dc4fa5073f82_18
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		$fill in the blank 206dc4fa5073f82_19	$fill in the blank 206dc4fa5073f82_20
Total equivalent units		fill in the blank 206dc4fa5073f82_21	fill in the blank 206dc4fa5073f82_22
Cost per equivalent unit		$fill in the blank 206dc4fa5073f82_23	$fill in the blank 206dc4fa5073f82_24
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$fill in the blank 206dc4fa5073f82_25
Costs incurred in January			fill in the blank 206dc4fa5073f82_26
Total costs accounted for by the Cutting Department			$fill in the blank 206dc4fa5073f82_27
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$fill in the blank 206dc4fa5073f82_28
To complete inventory in process, January 1		$fill in the blank 206dc4fa5073f82_29	fill in the blank 206dc4fa5073f82_30
Cost of completed January 1 work in process			$fill in the blank 206dc4fa5073f82_31
Started and completed in January	$fill in the blank 206dc4fa5073f82_32	fill in the blank 206dc4fa5073f82_33	fill in the blank 206dc4fa5073f82_34
Transferred to finished goods in January			$fill in the blank 206dc4fa5073f82_35
Inventory in process, January 31	fill in the blank 206dc4fa5073f82_36	fill in the blank 206dc4fa5073f82_37	fill in the blank 206dc4fa5073f82_38
Total costs assigned by the Cutting Department			$fill in the blank 206dc4fa5073f82_39

b. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December). When the answer is an increase enter it as a positive number and when it's a decrease enter it as a negative number. If required, round your answers to two decimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$fill in the blank 6f721c0b1ff9fe0_2
Change in conversion cost per equivalent unit		$fill in the blank 6f721c0b1ff9fe0_4

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