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, 80% completed $141,024* *Direct materials (10,400 $10.2) $106,080 Conversion (10,400 80% $4.2) 34,944 $141,024 Materials added during January from Weaving Department, 160,000 units $1,640,000 Direct labor for January 286,344 Factory overhead for January 349,976 Goods finished during January (includes goods in process, January 1), 161,800 units Work in process, January 31, 8,600 units, 20% completed Question Content Area a.

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.

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.