Cost of Production Report The Cutting Department of Karachi Carpet Company provi
ID: 2544373 • Letter: C
Question
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for lanuary. Assume that all materials are added at the beginning of the process. work in process, January 1, 8,600 units, 70% completed $86,946 Direct materials (8,600 x $7.8) Conversion (8,600 x 70% x 3.3) $67,080 19,866 $86,946 Materials added during January from Weaving Department, 132,400 units Direct labor for January Factory overhead tor January Goods finished during Janry ncludes goods In process, January I), 134,000 units work in process, January 31, 7,000 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. $1,039,340 200,629 245,213 Karachi Carpet Company Cost of Production Report-Cutting Department For the Month Lnded January 31 Unit Intormation Units charged to production: Inventory In process, January 1 Recelved from Weaving Department Total units accounted for by the Cutting DepartmentExplanation / Answer
Cost of Production Report-Cutting Department Cutting Unit Information Units charged to production: Inventory in process, January 1 8600 Received from materials storeroom 132400 Total units accounted for by the Cutting Department 141000 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 8600 0 2580 Started and completed in January 125400 125400 125400 Transferred to Packing Department in January 134000 125400 127980 Inventory in process, January 31 7000 7000 3150 Total units to be assigned costs 141000 132400 131130 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department 1039340 445842 Total equivalent units 132400 131130 Cost per equivalent unit 7.85 3.4 Costs charged to production: Direct Materials Conversion Total Inventory in process, January 1 86946 Costs incurred in January 1485182 Total costs accounted for by the Cutting Department 1572128 Cost allocated to completed and partially completed units: Inventory in process, January 1 balance 86946 To complete inventory in process, January 1 0 8772 8772 Cost of completed January 1 work in process 95718 Started and completed in January 984390 426360 1410750 Transferred to Packing Department in January 1506468 Inventory in process, January 31 54950 10710 65660 Total costs assigned by the Cutting Department 1572128 2 Increase or Decrease Amount Change in direct materials cost per equivalent unit Increase 0.05 Change in conversion cost per equivalent unit Increase 0.1