Question

Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. Work in process, January 1, 7,200 units, 65% completed $72,576" "Direct materials (7,200 x $8.00) $57,600 Conversion (7,200 x 65% x $3.20) 14,976 $72,576 Materials added during January from Weaving Department, 110,800 units $903,020 Direct labor for January 153,631 Factory overhead for January 187,772 Goods finished during January (Includes goods in process, January 1), 112,200 units Work in process, January 31, 5,800 units, 45% completed a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places. Karachi Carpet Company

Answer 1

Answer- Karachi Carpet Company Gost of production Report-cutting Department - for the month Ended January 31 Unit information Units charged to production ? Inventory in process Janbory 7,200 Received from weaving Department 110,800 Total units accounted for by the cutting 118,000 Department units to be assigned casts: : Equivalent units whole units Direct material conversion Inventory in proces, January! 7,2000 2520 (78 started and completed in January 105.000 105,000 105.000 (110,800-5800) Transferred to Roasting Department in Jan 119,200 1051000 107,5220 Inventory in process, Jan 31 5,800 2610 Total units to be aligned casts (5.800x457) 118,000 110,800 llo,130 Cast Infoomation Costs per equivalent unit: (1200-4.680 100/- 5,800 Direct materiale conversion Total cost for January in ceetling Department $903.020 $341,403 Total equivalent units (18.71724153,631 110,800 110,130 Cast pet equivalent unit $ 8015 $3.10 Gasts charged to production ? (903020/10809341403/1103) Inventory in proceft, January ! Direct materiale conversion Total Gsts incurred in January (90302 07341403 $1244,423 Total costs accounted for by the cutting $1,316,9991 Department |$72,576

Gost allocated to complete and partially Empleted units: Inventory in process; Jan I balance $721576 To complete inventory in procese, Jan . $7,812 $7,818 (2520X89,10) Ost of completed Jan I work in process 80,388 started and completed in January 1855,950 $325,500 1,181,850 Cros000x8.15) 7105 coc X3.10)(855750+3254 Transferred to finished goods in Jan 1,261,638 Inventory in process, Jan 31 47,270 8091 (5800X8.15 (2610X3.10C47290+809) Total costs alligned by the cutting Department 111316,999 Increese or I Amount Change in direct material cost I Increase 0115 - per equivalent unit (8115-8) change in conversion cost per Dacrecele olo equivalent unit (3.20-3.10) 55,36) Recrear