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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Cost of production report
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The Cutting Department of Karachi Carpet Company provides the following data for January 2016. Assume that all materials are added at the beginning of the process.
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|
Work in process, January 1, 1,400 units, 75% completed *Direct materials (1,400 × $12.65) |
 $ 17,710 |
$ 22,960* |
|
Conversion (1,400 × 75% × $5.00) |
5,250 |
 |
|
 |
$22,960 |
 |
|
Materials added during January from Weaving Department, 58,000 Â units |
 |
$742,400 |
|
Direct labor for January |
 |
134,550 |
|
Factory overhead for January Goods finished during January (includes goods in process, January 1), 56,200 units Work in process, January 31, 3,200 units, 30% completed |
 |
151,611 — — |
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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