The Cutting Department of Karachi Carpet Company provides the following data for

Question

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, 8,400 units, 65% completed $116,844* Direct materials (8,400 x $10.4) Conversion (8,400 x 65% x $5.4) $87,360 29,484 $116,844 Materials added during January from Weaving Department, 129,200 units Direct labor for January Factory overhead for January Goods finished during January (includes goods in process, January 1), 130,800 units work in process, January 31, 6,800 units, 45% completed a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "O" For the cost per equivalent unit computations, round your answers to two decimal places $1,350,140 306,234 374,286 Karachi Carpet Company Cost of Production Report-Cutting Department For the Month Ended January 31 Unts charged to production Inventory in process,January Received from Weaving Department Total Next

Explanation / Answer

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 8400 Received from Weaving Dept 129200 Total units accounted for by the Cutting Department 137600 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 8400 0 2940 Started and completed in January 122400 122400 122400 Transferred to Packing Department in January 130800 122400 125340 Inventory in process, January 31 6800 6800 3060 Total units to be assigned costs 137600 129200 128400 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department 1350140 680520 Total equivalent units 129200 128400 Cost per equivalent unit 10.45 5.3 Costs charged to production: Direct Materials Conversion Total Inventory in process, January 1 116844 Costs incurred in January 2030660 Total costs accounted for by the Cutting Department 2147504 Cost allocated to completed and partially completed units: Inventory in process, January 1 balance 116844 To complete inventory in process, January 1 0 15582 15582 Cost of completed January 1 work in process 132426 Started and completed in January 1279080 648720 1927800 Transferred to Finsihed goods in January 2060226 Inventory in process, January 31 71060 16218 87278 Total costs assigned by the Cutting Department 2147504 2 Increase or Decrease Amount Change in direct materials cost per equivalent unit Increase 0.05 Change in conversion cost per equivalent unit Decrease 0.1

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