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Cost of production report The Culling 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 x 75% × $5.00) 5,250 $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. 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).

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 20, Problem 20.17EX
Textbook Problem

Cost of production report

The Culling 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 x 75% × $5.00) 5,250
$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. 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).

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Chapter 20 Solutions

Accounting
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