Question

# Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for...

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, 14,400 units, 60% completed \$181,152* *Direct materials (14,400 × \$9.4) \$135,360 Conversion (14,400 × 60% × \$5.3) 45,792 \$181,152 Materials added during January from Weaving Department, 221,600 units \$2,094,120 Direct labor for January 535,280 Factory overhead for January 654,232 Goods finished during January (includes goods in process, January 1), 224,200 units — Work in process, January 31, 11,800 units, 40% 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 Cost of Production Report-Cutting Department For the Month Ended January 31 Unit Information Units charged to production: Inventory in process, January 1 Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total units to be assigned costs Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department \$ \$ Total equivalent units Cost per equivalent unit \$ \$ Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 \$ Costs incurred in January Total costs accounted for by the Cutting Department \$ Cost allocated to completed and partially completed units: Inventory in process, January 1 balance \$ To complete inventory in process, January 1 \$ Cost of completed January 1 work in process \$ Started and completed in January \$ Transferred to finished goods in January \$ Inventory in process, January 31 Total costs assigned by the Cutting Department \$ b. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit \$ Change in conversion cost per equivalent unit \$

 a) Carpet company Cost of production report - Cutting Department: Units charged to production: WIP Jan 1 14400 Recd. From Weaving deptt. 221600 Total units to account for 236000 Total units accounted for: Tranferred to next process 224200 WIP Jan 31 11800 Total units accounted for: 236000 Assigned costs and reconciliations: Whole units DM Conversion total WIP Jan 1 14400 0 14400*0.4=5760 181152 Started and completed in Jan 209800 209800 209800 Tranferred out 224200 WIP Jan 31 11800 11800 11800*0.4=4720 Equivalent units 221600 220280 Costs: Incurred during jan 2094120 1189512 3283632 Total Cost to account for 3464784 Cost per Eq unit 9.45 5.4 Cost of transferred out; Cost of WIP Jan 1 135360 45792 181152 Incurred during jan 0 5760*5.4=31104 31104 Total cost WIP jan1 212256 Cost of started and completed 209800*9.45=1982610 209800*5.4=1132920 3115530 Total cost of Transferred out 3327786 Cost of WIP Jan 31 11800*9.45=111510 4720*5.4=25488 136998 Total Cost accounted for 3464784 b) DM Conversion Cost per unit in Dec 9.4 5.3 Cost per unit in Jan 9.45 5.4 Increase or decrease: Change in DM (incease) \$0.05 Change in Conversion(increase) \$0.10

#### Earn Coins

Coins can be redeemed for fabulous gifts.