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. 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, January 1, 8,200 units, 65% completed $103,894* *Direct materials (8,200 × $10.2) $83,640 Conversion (8,200 × 65% × $3.8) 20,254 $103,894 Materials added during January from Weaving Department, 126,400 units $1,301,920 Direct labor for January 219,708 Factory overhead for January 268,533 Goods finished during January (includes goods in process, January 1), 127,800 units — Work in process, January 31, 6,800 units, 40% completed — Cost of Production Report-Cutting Department For the Month Ended January 31 Unit Information Units charged to production: Number of Units Inventory in process, January 1 fill in the blank Received from Weaving Department fill in the blank Total units accounted for by the Cutting Department fill in the blank Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 fill in the blank fill in the blank fill in the blank Started and completed in January fill in the blank fill in the blank fill in the blank Transferred to finished goods in January fill in the blank fill in the blank fill in the blank Inventory in process, January 31 fill in the blank fill in the blank fill in the blank Total units to be assigned cost fill in the blank fill in the blank fill in the blank Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department $fill in the blank $fill in the blank Total equivalent units fill in the blank fill in the blank Cost per equivalent unit $fill in the blank $fill in the blank Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 $fill in the blank Costs incurred in January fill in the blank Total costs accounted for by the Cutting Department $fill in the blank Costs allocated to completed and partially completed units: Inventory in process, January 1 balance $fill in the blank To complete inventory in process, January 1 $fill in the blank $fill in the blank fill in the blank Cost of completed January 1 work in process $fill in the blank Started and completed in January $fill in the blank fill in the blank fill in the blank Transferred to finished goods in January $fill in the blank Inventory in process, January 31 fill in the blank fill in the blank fill in the blank Total costs assigned by the Cutting Department $fill in the blank b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit $fill in the blank Change in conversion cost per equivalent unit $fill in the blank
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. 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, January 1, 8,200 units, 65% completed $103,894* *Direct materials (8,200 × $10.2) $83,640 Conversion (8,200 × 65% × $3.8) 20,254 $103,894 Materials added during January from Weaving Department, 126,400 units $1,301,920 Direct labor for January 219,708 Factory overhead for January 268,533 Goods finished during January (includes goods in process, January 1), 127,800 units — Work in process, January 31, 6,800 units, 40% completed — Cost of Production Report-Cutting Department For the Month Ended January 31 Unit Information Units charged to production: Number of Units Inventory in process, January 1 fill in the blank Received from Weaving Department fill in the blank Total units accounted for by the Cutting Department fill in the blank Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, January 1 fill in the blank fill in the blank fill in the blank Started and completed in January fill in the blank fill in the blank fill in the blank Transferred to finished goods in January fill in the blank fill in the blank fill in the blank Inventory in process, January 31 fill in the blank fill in the blank fill in the blank Total units to be assigned cost fill in the blank fill in the blank fill in the blank Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for January in Cutting Department $fill in the blank $fill in the blank Total equivalent units fill in the blank fill in the blank Cost per equivalent unit $fill in the blank $fill in the blank Costs assigned to production: Direct Materials Conversion Total Inventory in process, January 1 $fill in the blank Costs incurred in January fill in the blank Total costs accounted for by the Cutting Department $fill in the blank Costs allocated to completed and partially completed units: Inventory in process, January 1 balance $fill in the blank To complete inventory in process, January 1 $fill in the blank $fill in the blank fill in the blank Cost of completed January 1 work in process $fill in the blank Started and completed in January $fill in the blank fill in the blank fill in the blank Transferred to finished goods in January $fill in the blank Inventory in process, January 31 fill in the blank fill in the blank fill in the blank Total costs assigned by the Cutting Department $fill in the blank b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit $fill in the blank Change in conversion cost per equivalent unit $fill in the blank
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
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.
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, January 1, 8,200 units, 65% completed | $103,894* | |
| *Direct materials (8,200 × $10.2) | $83,640 | |
| Conversion (8,200 × 65% × $3.8) | 20,254 | |
| $103,894 | ||
| Materials added during January from Weaving Department, 126,400 units | $1,301,920 | |
| Direct labor for January | 219,708 | |
| Factory |
268,533 | |
| Goods finished during January (includes goods in process, January 1), 127,800 units | — | |
| Work in process, January 31, 6,800 units, 40% completed | — |
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
| Units charged to production: | Number of Units |
|---|---|
| Inventory in process, January 1 | fill in the blank |
| Received from Weaving Department | fill in the blank |
| Total units accounted for by the Cutting Department | fill in the blank |
| Units to be assigned costs: | Equivalent Units | ||
|---|---|---|---|
| Whole Units | Direct Materials | Conversion | |
| Inventory in process, January 1 | fill in the blank | fill in the blank | fill in the blank |
| Started and completed in January | fill in the blank | fill in the blank | fill in the blank |
| Transferred to finished goods in January | fill in the blank | fill in the blank | fill in the blank |
| Inventory in process, January 31 | fill in the blank | fill in the blank | fill in the blank |
| Total units to be assigned cost | fill in the blank | fill in the blank | fill in the blank |
Cost Information
| Cost per equivalent unit: | Direct Materials | Conversion | |
|---|---|---|---|
| Total costs for January in Cutting Department | $fill in the blank | $fill in the blank | |
| Total equivalent units | fill in the blank | fill in the blank | |
| Cost per equivalent unit | $fill in the blank | $fill in the blank | |
| Costs assigned to production: | |||
| Direct Materials | Conversion | Total | |
| Inventory in process, January 1 | $fill in the blank | ||
| Costs incurred in January | fill in the blank | ||
| Total costs accounted for by the Cutting Department | $fill in the blank | ||
| Costs allocated to completed and partially completed units: | |||
| Inventory in process, January 1 balance | $fill in the blank | ||
| To complete inventory in process, January 1 | $fill in the blank | $fill in the blank | fill in the blank |
| Cost of completed January 1 work in process | $fill in the blank | ||
| Started and completed in January | $fill in the blank | fill in the blank | fill in the blank |
| Transferred to finished goods in January | $fill in the blank | ||
| Inventory in process, January 31 | fill in the blank | fill in the blank | fill in the blank |
| Total costs assigned by the Cutting Department | $fill in the blank |
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit |
|
$fill in the blank |
| Change in conversion cost per equivalent unit |
|
$fill in the blank |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education