Cost of Production Report 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, 7,600 units, 80% completed $107,008* *Direct materials (7,600 x $9.6) $72,960 Conversion (7,600 x 80% $5.6) 34,048 $107,008 Materials added during January from Weaving Department, 117,200 units $1,130,980 Direct labor for January 283,091 345,999 Factory overhead for January Goods finished during January (includes goods in process, January 1), 118,600 units Work in process, January 31, 6,200 units, 30% 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 Unit Information Units charged to production: Inventory in process, January 1 7,600 Received from Weaving Department 117,200 Total units accounted for by the Cutting Department 124.800 Units to be assigned costs: Equivalent Units Direct Conversion Materials Whole Units Inventory in process, January 1 7,600 1,520 Started and completed in January 111,000 111,000 111,000 Transferred to finished goods in January 118,600 ? - 111,000 112,520 Inventory in process, January 31 6,200 ? 6,200 1,860 Total units to be assigned costs 124,800 117,200 ? 114,380 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 100 Transferred to finished goods in January Inventory in process, January 31 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 Decrease