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, 8,400 units, 75% completed | | $102,060* |
| *Direct materials (8,400 × $8.4) | $70,560 | |
| Conversion (8,400 × 75% × $5) | 31,500 | |
| $102,060 | |
| Materials added during January from Weaving Department, 129,200units | | $1,098,200 |
| Direct labor for January | | 290,409 |
| Factory overhead for January | | 354,945 |
| Goods finished during January (includes goods in process,January 1), 130,800 units | | — |
| Work in process, January 31, 6,800 units, 30% completed | | — |
a. Prepare a cost of production report for theCutting Department. If an amount is zero or a blank, enter in "0".For the The rate used to allocate costs between completed andpartially completed production.cost per equivalent unitcomputations, 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
| | - 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 completedunits:
| | | | - 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 perequivalent unit for direct materials and conversion from theprevious month (December). If required, round your answers to twodecimal places.
| - Increase or Decrease
| - Amount
| - Change in direct materials cost per equivalent unit
| | - $
| - Change in conversion cost per equivalent unit
| | |
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