Cost of Production Report The Cutting Department of Tangu Carpet Company provide
ID: 2420489 • Letter: C
Question
Cost of Production Report
The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that all materials are added at the beginning of the process.
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.
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (November). If required, round your answers to two decimal places.
Work in process, December 1, 12,200 units, 70% completed $138,714* *Direct materials (12,200 × $7.8) $95,160 Conversion (12,200 × 70% × $5.1) 43,554 $138,714 Materials added during December from Weaving Department, 188,000 units $1,485,200 Direct labor for December 415,485 Factory overhead for December 507,815 Goods finished during December (includes goods in process, December 1), 190,200 units — Work in process, December 31, 10,000 units, 30% completed —Explanation / Answer
b)
Unit Information Units charged to production: Inventory in process, December 1 12200 Received from Weaving Department 188000 Total units accounted for by the Cutting Department 200200 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, December 1 12200 12200 8540 Started and completed in December 188000 178000 178000 Transferred to finished goods in December E 190200 190200 190200 Inventory in process, December 31 d 10000 3000 3000 Total units to be assigned cost a 200200 193200 193200 Cost Information Costs per equivalent unit: b/a c 12.9 7.9 5.0 Direct Materials Conversion Total costs for December in Cutting Department 1580360 966854 Total equivalent units 193200 193200 Cost per equivalent unit 7.9 5.0 Costs assigned to production: Direct Materials Conversion Total Inventory in process, December 1 95160 43554 138714 Costs incurred in December 1485200 923300 2408500 Total costs accounted for by the Cutting Department b 1580360 966854 2547214 Costs allocated to completed and partially completed units: Inventory in process, December 1 balance 95160 43554 138714 To complete inventory in process, December 1 30% left for conversion completion so cost*3660 units 18316.2 18316.2 Cost of completed December 1 work in process 95160.0 61870.2 157030.2 Started and completed in December 1484054.3 890786.8 2374841.2 Transferred to finished goods in December 1579214.3 952657.0 2531871.3 Inventory in process, December 31 23681.7 15013.3 38695.0 Total costs assigned by the Cutting Department 1602896.1 967670.3 2570566.315