Cost of The Cutting Department of Karachi Carpet Company provides the following
ID: 2523378 • Letter: C
Question
Cost of 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, lanuary 1, 10,000 units, 80% completed Direct materials (10,600 x $9) conversion (10,600 x 80% x SA, 1) $130,168 Materials added during January from Weaving Department, 163,200 units Direct labor for January Factory overhead for January Goods finished during January (ndludes goods in process, January 1), 165,200 units work in process, January 31-8,600 units, 35% completed a. Prepare a cost of production report for the Cutting Department it an amount is zero or a $1.476,960 351.406 blank, enter in "or For the cost per equivalent unit answers to two decimal places. tnventory in process, January 1 Received from weaving Department Units to Inventory in process, January 1 Started and conpleted in Janary Tranferred to nished goods in January Dnventory in process, Janary 31Explanation / Answer
Cost of Production Report-Cutting Department For the Month Ended January 31 Unit Information Units charged to production: Inventory in process, January 1 10600 Received from weaving dept 163200 Total units accounted for by the Cutting Department 173800 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 10600 0 2120 Started and completed in January 154600 154600 154600 Transferred to Packing Department in January 165200 154600 156720 Inventory in process, January 31 8600 8600 3010 Total units to be assigned costs 173800 163200 159730 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department 1476960 638920 Total equivalent units 163200 159730 Cost per equivalent unit 9.05 4 Costs charged to production: Direct Materials Conversion Total Inventory in process, January 1 130168 Costs incurred in January 2115880 Total costs accounted for by the Cutting Department 2246048 Cost allocated to completed and partially completed units: Inventory in process, January 1 balance 130168 To complete inventory in process, January 1 0 8480 8480 Cost of completed January 1 work in process 138648 Started and completed in January 1399130 618400 2017530 Transferred to finsihed goods in January 2156178 Inventory in process, January 31 77830 12040 89870 Total costs assigned by the Cutting Department 2246048 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