Question

Print item work in process, January 1, 13,600 units, 80% completed $176,800 $122,400 Direct labor for January 454,583 Factory overhead for January 555,601 work in process, January 31, 11,200 units, 45% completed answers to two decimal places. Cost of 31

Answer 1

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			13,600
Received from weaving department			2,09,600
Total units accounted for by the Cutting Department			2,23,200
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	13,600	-	2,720
Started and completed in January	1,98,400	1,98,400	1,98,400
Transferred to finished goods in January	2,12,000	1,98,400	2,01,120
Inventory in process, January 31	11,200	11,200	5,040
Total units to be assigned costs	2,23,200	2,09,600	2,06,160
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		1907360	1010184
Total equivalent units		209600	206160
Cost per equivalent unit		$9.10	$4.90
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			$1,76,800
Costs incurred in January			$29,17,544
Total costs accounted for by the Cutting Department			$30,94,344
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			$1,76,800
To complete inventory in process, January 1	$0	$12,936	$12,936
Cost of completed January 1 work in process			$1,89,736
Started and completed in January	$18,05,440	$9,72,160	$27,77,600
Transferred to Finished goods in January			$29,67,336
Inventory in process, January 31	$1,01,920	$24,696	$1,26,616
Total costs assigned by the Cutting Department			$30,93,952

Part-2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit ($9.10-$9)	Increase	$0.10
Change in conversion cost per equivalent unit ($5-4.90)	Decrease	$0.10