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Cost of Production Report The Cutting Department of Tangu Carpet Company provides the following data for December 2014. Assume that all materials are...


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.

Work in process, December 1, 8,600 units, 80% completed   $107,328*
    *Direct materials (8,600 × $8.40) $72,240  
    Conversion (8,600 × 80% × $5.10) 35,088  
  $107,328  
Materials added during December from Weaving Department, 132,400 units   $1,118,780
Direct labor for December   302,375
Factory overhead for December   369,569
Goods finished during December (includes goods in process, December 1), 134,000 units  
Work in process, December 31, 7,000 units, 30% completed  



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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 
Unit Information
Units charged to production:
 Inventory in process, December 1 
  
 Received from Weaving Department 
  
 Total units accounted for by the Cutting Department 
  
Units to be assigned costs:
 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 
  
  
  
Cost Information
Costs per equivalent unit:
 Direct Materials 
 Conversion 
 Total costs for December in Cutting Department 
 
 
 Total equivalent units 
  
  
 Cost per equivalent unit 
 
 
Costs assigned to production:
 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.

  Increase or Decrease Amount
Change in direct materials cost per equivalent unit SelectDecreaseIncreaseCorrect 1 of Item 2 $
Change in conversion cost per equivalent unit SelectDecreaseIncreaseCorrect 3 of Item 2

$

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COST OF PRODUCTION REPORT Costs: Materials Conversion Beginning Work in Process, Dec 1 76,950 $26,325 Materials... View the full answer

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