Cost of Production Report The Cutting Department of Tangu Carpet Company provide
ID: 2421213 • 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, 12,600 units, 65% completed $157,878* *Direct materials (12,600 × $9.8) $123,480 Conversion (12,600 × 65% × $4.2) 34,398 $157,878 Materials added during December from Weaving Department, 194,000 units $1,910,900 Direct labor for December 372,855 Factory overhead for December 455,712 Goods finished during December (includes goods in process, December 1), 196,200 units — Work in process, December 31, 10,400 units, 45% completed —Explanation / Answer
Tangu Carpet Company Cost of production Report-Cutting Department for 31 December,2016 Unit Information Units charged to production: Inventory in process, December 1 12600 Received from Weaving Department 194000 Total units accounted for by the Cutting Department 206600 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Conversion units completed Inventory in process, December 1 12600 12600 8190 4410 Started and completed in December 183600 183600 183600 Transferred to finished goods in December E 196200 196200 196200 Inventory in process, December 31 d 10400 10400 4680 Total units to be assigned cost a 206600 206600 200880 Cost Information Costs per equivalent unit: b/a c 14.1 9.8 4.3 Direct Materials Conversion Total costs for December in Cutting Department 2034380 862965 Total equivalent units 206600 200880 Cost per equivalent unit 9.8 4.296 Costs assigned to production: Direct Materials Conversion Total Inventory in process, December 1 123480 34398 157878 Costs incurred in December 1910900 828567 2739467 Total costs accounted for by the Cutting Department b 2034380 862965 2897345 Costs allocated to completed and partially completed units: Inventory in process, December 1 balance 123480 34398 157878 To complete inventory in process, December 1 35% left for conversion completion so cost*4410 units 18945.0 18945.0 Cost of completed December 1 work in process 123480.0 53343.0 176823.0 Started and completed in December 1808491.7 789517.1 2598008.8 Transferred to finished goods in December 1931971.7 842860.1 2774831.8 Inventory in process, December 31 102408.3 20104.9 122513.2 Total costs assigned by the Cutting Department 2034380.0 862965.0 2897345.026 0.0 0.0 Increase or Decrease Amount Change in direct materials cost per equivalent unit Nil Nil Change in conversion cost per equivalent unit .1 Increase $4.3