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, 10,200 units, 50% completed $125,868 "Direct materials (10,200 x $10.00) $107.000 Conversion (10,200 x 60% * $3.90) $1.570,860 Materials added during January from Weaving Department, 157,200 units Direct labor for January Factory overhead for January Goods finished during January (includes goods in process, January 1). 159.000 units Work in process, January 31, 8,400 units, 20% completed 264,298 323,030 a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank enter in O' For the cost pe decimal places Karachi Carpet Company Cost of Production Report-cutting Department For the Month Ended January 11 Unt changed to production: Inventory in proces January 1 Received from Weaving Deatment

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			10200
Received from Weaving Department			157200
Total units accounted for by the Cutting Department			167400
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, January 1	10200	0	4080
Started and completed in January	148800	148800	148800
Transferred to Finished goods in January	159000	148800	152880
Inventory in process, January 31	8400	8400	1680
Total units to be assigned costs	167400	157200	154560
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for January in Cutting Department		1579860	587328
Total equivalent units		157200	154560
Cost per equivalent unit		10.05	3.80
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, January 1			125868
Costs incurred in January			2167188
Total costs accounted for by the Cutting Department			2293056
Cost allocated to completed and partially completed units:
Inventory in process, January 1 balance			125868
To complete inventory in process, January 1	0	15504	15504
Cost of completed January 1 work in process			141372
Started and completed in January	1495440	565440	2060880
Transferred to Finished goods in January			2202252
Inventory in process, January 31	84420	6384	90804
Total costs assigned by the Cutting Department			2293056
2
	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Increase	0.05	=10.05-10
Change in conversion cost per equivalent unit	Decrease	0.10	=3.9-3.8