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.
A. Prepare a 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)
Extracted text: Work in process, January 1, 1,400 units, 75% completed $ 22.960" "Direct materials (1,400 x $12.65) $17,710 5.250 $22.960 Conversion (1,400 x 75% × $5.00) Materials added during January from Weaving Department, 58,000 units $742,400 Direct labor for January Factory overhead for January 134,550 151,611 Goods finished during January (includes goods in process, January 1), 56,200 units Work in process, January 31, 3,200 units, 30% completed