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|
|Materials added during December from Weaving Department, 132,400 units||$1,118,780|
|Direct labor for December||302,375|
|Factory overhead for December||369,569|
|Goods finished during December (includes goods in process, December 1), 134,000 units||—|
|Work in process, December 31, 7,000 units, 30% completed||—|
a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unitcomputations, round your answers to two decimal places.
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (November). If required, round your answers to two decimal places.
|Increase or Decrease||Amount|
|Change in direct materials cost per equivalent unit||SelectDecreaseIncreaseCorrect 1 of Item 2||$|
|Change in conversion cost per equivalent unit||SelectDecreaseIncreaseCorrect 3 of Item 2|| |
COST OF PRODUCTION REPORT Costs: Materials Conversion Beginning Work in Process, Dec 1 76,950 $26,325 Materials... View the full answer