Question

Cost of Production Report

The Cutting Department of Tangu Carpet Company provides thefollowing data for December 2016. Assume that all materials areadded at the beginning of the process.

Work in process, December 1, 12,200 units, 70% completed		$138,714*
*Direct materials (12,200 × $7.8)	$95,160
Conversion (12,200 × 70% × $5.1)	43,554
	$138,714
Materials added during December from Weaving Department,188,000 units		$1,485,200
Direct labor for December		415,485
Factory overhead for December		507,815
Goods finished during December (includes goods in process,December 1), 190,200 units		—
Work in process, December 31, 10,000 units, 30% completed		—

a. Prepare a cost of production report for theCutting Department. If an amount is zero or a blank, enter in "0".For the cost per equivalent unit computations, round your answersto two decimal places.

Tangu CarpetCompany
Cost ofProduction Report-Cutting Department
For the MonthEnded December 31, 2016
UnitInformation
Units charged toproduction:
Inventory in process, December1
Received from WeavingDepartment
Total units accounted for bythe Cutting Department
Units to be assignedcosts:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, December1
Started and completed inDecember
Transferred to finished goodsin December
Inventory in process, December31
Total units to be assignedcost
CostInformation
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for December inCutting Department		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs assigned toproduction:
	Direct Materials	Conversion	Total
Inventory in process, December1			$
Costs incurred in December
Total costs accounted for bythe Cutting Department			$
Costs allocated to completedand partially completed units:
Inventory in process, December1 balance			$
To complete inventory inprocess, December 1		$
Cost of completed December 1work in process			$
Started and completed inDecember	$
Transferred to finished goodsin December			$
Inventory in process, December31
Total costs assigned by theCutting Department			$

b. Compute and evaluate the change in cost perequivalent unit for direct materials and conversion from theprevious month (November). If required, round your answers to twodecimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$
Change in conversion cost per equivalent unit		$