Work out the solution(s) and show work.
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, 1,400 units, 75% completed$ 22,960*
*Direct materials (1,400 × $12.65) $ 17,710
Conversion (1,400 × 75% × $5.00) $ 5,250
Total $ 22,960
Materials added during January from Weaving Department, 58,000 units $ 742,400
Direct labor for January $ 134,550
Factory overhead for January $ 151,611
Goods finished during January (includes goods in process, January 1), 56,200 units
Work in process, January 31, 3,200 units, 30% completed
A. prepraree the cost of production report for the Cutting Department.
B. Compute and evaluate the change in the costs per equivalent unit for direct materials and
conversion from the previous month (December).
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