Using the FIFO method Cost of Production Report

The Cutting Department of Tangu Carpet Company provides the following data for December 2014. Assume that all materials are added at the beginning of the process.

Work in process, December 1, 8,800 units, 65% completed		$102,080*
*Direct materials (8,800 $9.00)	$79,200
Conversion (8,800 65% $4.00)	22,880
	$102,080
Materials added during December from Weaving Department, 135,600 units		$1,247,520
Direct labor for December		246,566
Factory overhead for December		301,358
Goods finished during December (includes goods in process, December 1), 137,200 units
Work in process, December 31, 7,200 units, 30% completed

Hide

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.

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (November). If required, round your answers to two decimal places.

Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	SelectDecreaseIncreaseCorrect 1 of Item 2	$
Change in conversion cost per equivalent unit	SelectDecreaseIncreaseCorrect 3 of Item 2	$

Units charged to production Inventory in process, December Received from Weaving Department Total units accounted for by the cutting Department Units to be assigned oeember pleted in December Inventory in process, December 31 uni, mes Costs per equivalent unit: Total equivalent units Costs akciigned to productior Inventory in process, December costs allocated to completed and partially completed units: plete inventory in process December 1 Cost of completed December 1 work in pleted in December Tramifered to finished goods in December Inventory in process, December 31 Tang Carpat Company Production port cutting Departme For the Month Endlad Ducambar 31,20dA Equivalent Units units Matera Conwerson