Cost of Production Report The Cutting Department of Tangu Carpet Company provide
ID: 2587152 • Letter: C
Question
Cost of Production Report
The Cutting Department of Tangu Carpet Company provides the following data for December 2014. Assume that all materials are added at the beginning of the process.
Materials added during December from Weaving Department, 181,600 units $1,825,080
Direct labor for December 289,996
Factory overhead for December 354,440
Goods finished during December (includes goods in process, December 1), 183,800 units
Work in process, December 31, 9,600 units, 30% completed —
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 unitcomputations, round your answers to two decimal places.
Tangu Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended December 31, 2014
Inventory in process, December 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Equivalent Units
Whole Units
Direct Materials
Conversion
Inventory in process, December 1
Started and completed in December
Transferred to finished goods in December
Inventory in process, December 31
Total units to be assigned cost
Direct Materials
Conversion
Total costs for December in Cutting Department
$
$
Total equivalent units
Cost per equivalent unit
$
$
Direct Materials
Conversion
Total
Inventory in process, December 1
$
Costs incurred in December
Total costs accounted for by the Cutting Department
$
Costs allocated to completed and partially completed units:
Inventory in process, December 1 balance
$
To complete inventory in process, December 1
$
Cost of completed December 1 work in process
$
Started and completed in December
$
Transferred to finished goods in December
$
Inventory in process, December 31
Total costs assigned by the Cutting Department
$
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, 11,800 units, 65% completed $147,146* *Direct materials (11,800 × $10.00) $118,000 Conversion (11,800 × 65% × $3.80) 29,146 $147,146Explanation / Answer
a.
Please note that there is a difference in the total costs accounted for and total costs assigned due to rounding off.
b.
Tangu Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, 2014 Unit Information Units charged to production: Inventory in process, December 1 11800 Received from Weaving Department 181600 Total units accounted for by the Cutting Department 193400 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, December 1 11800 11800 7670 Started and completed in December 172000 172000 172000 Transferred to finished goods in December 183800 183800 183800 Inventory in process, December 31 9600 9600 2880 Total units to be assigned cost 193400 193400 186680 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for December in Cutting Department $ 1943080 673582 Total equivalent units 193400 186680 Cost per equivalent unit $ 10.05 3.61 Costs assigned to production: Direct Materials Conversion Total Inventory in process, December 1 147146 Costs incurred in December 2469516 Total costs accounted for by the Cutting Department 2616662 Costs allocated to completed and partially completed units: Inventory in process, December 1 balance 147146 To complete inventory in process, December 1 14909 14909 Cost of completed December 1 work in process 162055 Started and completed in December 1728600 620920 2349520 Transferred to finished goods in December 2511575 Inventory in process, December 31 96480 10397 106877 Total costs assigned by the Cutting Department 2618452