Question

Cest of Production Report Average Cost Method Use the average cost method with the following in procesy Materials added during 1.4.2001 ary from weg Department 1.400 Dret labor for January Factory overhead forary Goodshed dur i ndades work in process, January 31, 2,000 units, for completed equivalent unit answer to two decal places Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost Da Carpet Company Cost of production Reporting Dement Inwory pro

Answer 1

Solution:

Dalton Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, December 1		4200
Received from Weaving department		79400
Total units accounted for by the Cutting Department		83600
Units to be assigned costs:
	Whole Units	Equivalent units of production
Transferred to finished goods in January	77700	77700
Inventory in process, January 31	5900	4130
Total units to be assigned costs	83600	81830
Cost Information
Costs per equivalent unit:
		Costs
Total costs for December in Cutting Department		$1,031,058.00
Total equivalent units		81830
Cost per equivalent unit (2)		$12.60
Costs assigned to production:
		Costs
Inventory in process, January 1		$37,044.00
Costs incurred in January		$994,014.00
Total costs accounted for by the Cutting Department		$1,031,058.00
Costs allocated to completed and partially completed units:
Transferred to Finished goods in January		$979,020.00
Inventory in process, January 31		$52,038.00
Total costs assigned by the cutting Department		$1,031,058.00