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, 10,600 units, 75% completed | | $100,965* |
|     *Direct materials (10,600 × $7.2) | $76,320 | |
|     Conversion (10,600 × 75% × $3.1) | 24,645 | |
| $100,965 | |
| Materials added during January from Weaving Department, 163,200units | | $1,199,520 |
| Direct labor for January | | 229,536 |
| Factory overhead for January | | 280,544 |
| Goods finished during January (includes goods in process,January 1), 165,200 units | | — |
| Work in process, January 31, 8,600 units, 25% completed | | — |
a. Prepare a cost of production report for theCutting Department. If an amount is zero or a blank, enter in \"0\".For the cost per equivalent unit computations, round your answersto 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 CuttingDepartment | |
| 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 CuttingDepartment | | | $ |
| Costs allocated to completed and partiallycompleted 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 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 | | $ |
