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, 15,000 units, 80% completed		$171,600*
*Direct materials (15,000 × $8)	$120,000
Conversion (15,000 × 80% × $4.3)	51,600
	$171,600
Materials added during January from Weaving Department, 231,200units		$1,861,160
Direct labor for January		429,748
Factory overhead for January		525,248
Goods finished during January (includes goods in process,January 1), 233,800 units		—
Work in process, January 31, 12,400 units, 45% 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.

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			$

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	Increase Decrease Increase	$
Change in conversion cost per equivalent unit	Decrease Decrease Increase	$