Question

Cost of production Report The Cutting Department of Carpet Company provides the following data for work in process, January 1, 10,400 unts, completed Direct materials (10.400K $9.60) Conversion (10,400 x 60N 14.10) $99.840 29,952 $1,544 Mersadded during January from Weaving Department, 160,000 units Direct labor for January Factory overhead for January Goods finished during muary (includes goods in process, January 1), 161,800 units Work in process, Manuary 31, 8, 600 unts, 25% completed . Prepare a cost of production report for the Cutting Department. If an amount is zero Karachi Carpet Company Cost of Production Report-Cutting Department For the Month Ended January 31 82 per equivalent unit computations, round your answers to two Units charged to production Invertory in process, January Received from Weaving Department Total units retourted for by the cutting Department Units to be used costs: Tentory in process, ed My

Answer 1

KARACHI CARPET COMPANY Cost of Production Report—Cutting Department For the Month Ended January 31
Units	Whole Units	Direct Materials	Conversion
Units charged to production:
Inventory in process, January 1	10400	0
Received from Weaving Department	160000
Total units accounted for by theCutting Department	170400
Units to be assigned cost
Inventory in process, January 1 (60% completed)	10400	0	4160
Started and completed in January 160000-8600	151400	151400	151400
Transferred to finished goods inJanuary	161800	151400	155560
Inventory in process, January 31 (25% completed)	8600	8600	2150
Total units to be assigned cost	170400	160000	157710
	Costs
Costs	DM	Conversion	Total
Costs per equivalent unit:	1544000	772779
Total costs for January in Cutting Department	160000	157710
Total equivalent units	9.65	4.90
Costs assigned to production:			129792
Costs incurred in January 1544000+347751+425028			2316779
Total costs accounted for by theCutting Department			2446571
Cost allocated to completed andpartially completed units:
Inventory in process, January 1 balance			129792
To complete inventory in process,January 1 6240*4.84		30202	30202
Cost of completed January 1 work in process			159994
Started and completed in January 9.65*151400 4.84*151400	1461010	732776	2193786
Transferred to finished goods in January			2353780
Inventory in process, January 31 8600*9.65 2150*4.84	82990	10406	93396
Total costs assigned by the CuttingDepartment			2447176

b
Materials
From current period	9.65
From beginning inventory	9.60
Increase	0.05
Conversion
From current period	4.90
From beginning inventory	4.80
Increase	0.10