Cost of Production Report The Cutting Department of Karachi Carpet Company provi

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 begi work in process, January 1, 10,400 units, 60% completed 115,024 "Direct materials (10,400 x $8) conversion (10,400 x 60% $5.1) $83,200 31,824 $115,024 Materials added during January from Weaving Department, 160,000 units Direct labor for January Factory overhead for January Goods finished during January (includes goods in process, January 1), 361,800 units work in process, January 31, 8,600 units, 35% 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. $1,304,000 356,783 436,067 Karachi Carpet Company Cost of Production Report-Cutting Department For the Month Ended January 31 Units charged to production: Inventory in process, January 1 10.400 160,000 Previous Nxt)

Explanation / Answer

Solution a:

Solution b:

Change in direct material cost per unit from December to January = $8.15 - $8 = $0.15 increase

Change in conversion cost per equivalent unit from December to January = $5 - $5.10 = $0.10 Decrease

Karachi Carpet Cutting Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 10400 Units started this period 160000 Total unit to be accounted for 170400 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 40% 10400 0 4160 Started and completed currently 151400 151400 151400 Units in ending WIP
Material - 100%
Conversion - 35% 8600 8600 3010 Total units accounted for 170400 160000 158570

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