The Cutting Department of Tangu Carpet Company provides thefollowing data for December 2016. Assume that all materials areadded at the beginning of the process.

Work in process, December 1, 10,400 units, 75% completed		$107,380*
*Direct materials (10,400 × $8)	$83,200
Conversion (10,400 × 75% × $3.1)	24,180
	$107,380
Materials added during December from Weaving Department,160,000 units		$1,288,000
Direct labor for December		210,803
Factory overhead for December		257,647
Goods finished during December (includes goods in process,December 1), 161,800 units		—
Work in process, December 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 unitcomputations, round your answers totwo decimal places.

Tangu Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended December 31, 2016
Unit Information
Units charged to production:
Inventory in process, December 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, December 1
Started and completed in December
Transferred to finished goods in December
Inventory in process, December 31
Total units to be assigned cost
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for December in Cutting Department		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, December 1			$
Costs incurred in December
Total costs accounted for by the CuttingDepartment			$
Costs allocated to completed and partiallycompleted units:
Inventory in process, December 1 balance			$
To complete inventory in process, December 1		$
Cost of completed December 1 work in process			$
Started and completed in December	$
Transferred to finished goods in December			$
Inventory in process, December 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 (November). 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		$ The Cutting Department of Tangu Carpet Company provides thefollowing data for December 2016. Assume that all materials areadded at the beginning of the process. Work in process, December 1, 10,400 units, 75% completed $107,380*     *Direct materials (10,400 × $8) $83,200     Conversion (10,400 × 75% × $3.1) 24,180 $107,380 Materials added during December from Weaving Department,160,000 units $1,288,000 Direct labor for December 210,803 Factory overhead for December 257,647 Goods finished during December (includes goods in process,December 1), 161,800 units — Work in process, December 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 unitcomputations, round your answers totwo decimal places. Tangu Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, 2016 Unit Information Units charged to production: Inventory in process, December 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, December 1 Started and completed in December Transferred to finished goods in December Inventory in process, December 31 Total units to be assigned cost Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for December in Cutting Department $ $ Total equivalent units Cost per equivalent unit $ $ Costs assigned to production: Direct Materials Conversion Total Inventory in process, December 1 $ Costs incurred in December Total costs accounted for by the CuttingDepartment $ Costs allocated to completed and partiallycompleted units: Inventory in process, December 1 balance $ To complete inventory in process, December 1 $ Cost of completed December 1 work in process $ Started and completed in December $ Transferred to finished goods in December $ Inventory in process, December 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 (November). 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 $