The Cutting Department of Tangu Carpet Company provides the following data for D

Question

The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that all materials are added at the beginning of the process. Work in process, December 1, 9,600 units, 70% completed $114,144* *Direct materials (9,600 × $8.6) $82,560 Conversion (9,600 × 70% × $4.7) 31,584 $114,144 Materials added during December from Weaving Department, 148,000 units $1,287,600 Direct labor for December 312,422 Factory overhead for December 381,850 Goods finished during December (includes goods in process, December 1), 149,800 units — Work in process, December 31, 7,800 units, 20% completed — 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. Tangu Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, 2016 Unit Information Units charged to production: Inventory in process, December 1 Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, December 1 Started and completed in December Transferred to finished goods in December Inventory in process, December 31 Total units to be assigned cost Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for December in Cutting Department $ $ Total equivalent units Cost per equivalent unit $ $ Costs assigned to production: Direct Materials Conversion Total Inventory in process, December 1 $ Costs incurred in December Total costs accounted for by the Cutting Department $ Costs allocated to completed and partially completed units: Inventory in process, December 1 balance $ To complete inventory in process, December 1 $ Cost of completed December 1 work in process $ Started and completed in December $ Transferred to finished goods in December $ Inventory in process, December 31 Total costs assigned by the Cutting Department $

Explanation / Answer

Cost of production report for the month of December Units % of completion Equivalent unit Cost per unit($) Total cost($) Opening work in process Direct Material 9600 100% 9600 8.6 82560 Conversion 9600 70% 6720 4.7 31584 Issue durimg the month Direct Material 148000 8.7 1287600 Conversion cost(Labor + factory overhead) (Cost per unit= $ 694,272/144640) 4.8 694272 Opening work in process (9600-6720) 2880 Add: units transferred (149800-9600) 140200 Add: equivalent units of closing work in process (7800*20%) 1560 Number of equivalent units produced during the month 144640 Goods finished 149800 100% 149800 (8.7+4.8) 2022300 Closing work in process 7800 20% 1560 (8.7+4.8) 21060

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