Cost of Production Report

The Cutting Department of Karachi Carpet Company provides thefollowing data for January. Assume that all materials are added atthe beginning of the process.

Work in process, January 1, 12,200 units, 75% completed$132,065*
    *Direct materials (12,200 × $7.6)$92,720
    Conversion (12,200 × 75% × $4.3)39,345
$132,065
Materials added during January from Weaving Department, 188,000units $1,457,000
Direct labor for January 364,419
Factory overhead for January 445,401
Goods finished during January (includes goods in process, January1), 190,200 units —
Work in process, January 31, 10,000 units, 30% completed —

a. Prepare a cost of production report for the CuttingDepartment. If an amount is zero or a blank, enter in "0". For theThe rate used to allocate costs between completed and partiallycompleted production.cost per equivalent unit computations, roundyour 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
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned cost
Cost Information
Cost 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 $
Costs 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 $
Transferred to finished goods in January $
Inventory in process, January 31
Total costs assigned by the Cutting Department $

Feedback

b. Compute and evaluate the change in cost per equivalent unitfor direct materials and conversion from the previous month(December). If required, round your answers to two decimalplaces.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit Increase

Decrease
Increase

$
Change in conversion cost per equivalent unit Increase

Decrease
Increase

$