Financial and Managerial Accounting: E18-17 The Cutting Department of Tangu Carpet Company provides

Financial and Managerial Accounting 
E18-17 Cost of Production Report 
The Cutting Department of Tangu Carpet Company provides the following data for December 2014. Assume that all materials are added at the beginning of the process. 
Work in process, December 1, 10,000 units, 55% completed 103,275 * 
    *Direct materials (9,000 × $8.55) 76,950 
    Conversion (9,000 × 75% × $3.90) 26,325 
103,275 
Materials added during December from Weaving Department, 139,000 units 1,209,300 
Direct labor for December 289,300 
Factory overhead for December 260,300 
Goods finished during December (includes goods in process, December 1), 142,500 units - 
Work in process, December 31, 5,500 units, 30% completed - 

Instructions: 
a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places. 
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (November). If required, round your answers to two decimal places.
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