Cost of Production ReportThe 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, 7,400 units, 60% completed$73,556**Direct materials (7,400 x $7.60)$56,240Conversion (7,400 x 60% x $3.90)17,316$73,556Materials added during January from Weaving Department, 114,000 units$877,800Direct labor for January201,888Factory overhead for January246,752Goods finished during January (includes goods in process, January 1), 115,400 unitsWork in process, January 31, 6,000 units, 20% completeda. 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.Karachi Carpet CompanyCost of Production Report-Cutting DepartmentFor the Month Ended January 31Unit InformationUnits charged to production:Inventory in process, January 17,400Received from Weaving Department114,000Total units accounted for by the Cutting Department121,400Units to be assigned costs:Equivalent UnitsDirectMaterialsWhole UnitsConversionInventory in process, January 17,4002,960Started and comoleted in Januarv108,000108,000108,000 Cost per equivalent unit:DirectConversionMaterialsTotal costs for January in Cutting Department877,800Total equivalent units114,000Cost per equivalent unit7.70Costs assigned to production:DirectConversionTotalMaterialsInventory in process, January 173,556Costs incurred in JanuaryTotal costs accounted for by the Cutting DepartmentCosts allocated to completed and partially completed units:Inventory in process, January 1 balance73,556To complete inventory in process, January 1Cost of completed January1 work in processStarted and completed in JanuaryTransferred to finished goods in JanuaryInventory in process, January 31Total costs assigned by the Cutting Departmentb. Compute and evaluate the change in the costs per equivalent unit for direct material s and conversicn from the previous month (December). If required, round your answers to two decimal places.Increase or DecreaseAmountChange in direct materials cost per equivalent unitChange in conversion cost per equivalent unit

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Description: Cost of Production ReportThe 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, 7,400 units, 60% completed$73,556**Dir

Materials percentage of completion of beginning work in process in current period = 100% - 100% = 0%…

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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, 7,400 units, 60% completed $73,556* *Direct materials (7,400 x $7.60) $56,240 Conversion (7,400 x 60% x $3.90) 17,316 $73,556 Materials added during January from Weaving Department, 114,000 units $877,800 Direct labor for January 201,888 Factory overhead for January 246,752 Goods finished during January (includes goods in process, January 1), 115,400 units Work in process, January 31, 6,000 units, 20% 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 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, 7,400 units, 60% completed $73,556* *Direct materials (7,400 x $7.60) $56,240 Conversion (7,400 x 60% x $3.90) 17,316 $73,556 Materials added during January from Weaving Department, 114,000 units $877,800 Direct labor for January 201,888 Factory overhead for January 246,752 Goods finished during January (includes goods in process, January 1), 115,400 units Work in process, January 31, 6,000 units, 20% 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 unit computations, round your answers to two decimal places.

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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.

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Cost of Production Report
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, 7,400 units, 60% completed
$73,556*
*Direct materials (7,400 x $7.60)
$56,240
Conversion (7,400 x 60% x $3.90)
17,316
$73,556
Materials added during January from Weaving Department, 114,000 units
$877,800
Direct labor for January
201,888
Factory overhead for January
246,752
Goods finished during January (includes goods in process, January 1), 115,400 units
Work in process, January 31, 6,000 units, 20% 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 unit computations, round your answers to two decimal places.
Karachi Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
7,400
Received from Weaving Department
114,000
Total units accounted for by the Cutting Department
121,400
Units to be assigned costs:
Equivalent Units
Direct
Materials
Whole Units
Conversion
Inventory in process, January 1
7,400
2,960
Started and comoleted in Januarv
108,000
108,000
108,000

Cost per equivalent unit:
Direct
Conversion
Materials
Total costs for January in Cutting Department
877,800
Total equivalent units
114,000
Cost per equivalent unit
7.70
Costs assigned to production:
Direct
Conversion
Total
Materials
Inventory in process, January 1
73,556
Costs incurred in January
Total costs accounted for by the Cutting Department
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance
73,556
To complete inventory in process, January 1
Cost of completed January1 work in process
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total costs assigned by the Cutting Department
b. Compute and evaluate the change in the costs per equivalent unit for direct material s and conversicn 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
Change in conversion cost per equivalent unit

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