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The Cutting Department of Karachi Carpet Company provides the following data for

ID: 2536991 • Letter: T

Question

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.

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 unitcomputations, round your answers to two decimal places.

Work in process, January 1, 11,000 units, 60% completed $141,020*     *Direct materials (11,000 × $10) $110,000     Conversion (11,000 × 60% × $4.7) 31,020 $141,020 Materials added during January from Weaving Department, 169,600 units $1,704,480 Direct labor for January 364,176 Factory overhead for January 445,104 Goods finished during January (includes goods in process, January 1), 171,600 units — Work in process, January 31, 9,000 units, 40% completed —

Explanation / Answer

Karachi Carpet Company Cost of Production Report- Cutting Department For the Month Ended Jan31 Unit Charged to production Inventory in process, Jan1               11,000 Received from Material             169,600 Total Unit accounted for by the Cutting Department             180,600 Unti to be assigned Equivalent Unit Whole Unit Direct Material Conversion Inventory in process, Jan1 (a)            11,000                 4,400 Started & Completed in Jan ( 171600-11000) (b)          160,600                160,600             160,600 Good Finshed during Jan (c= a+b)          171,600                160,600             165,000 Inventory in Process, 31 Jan ( d)              9,000                    9,000                 3,600 total unit to be assigned Cost (c+d)          180,600                169,600             168,600 Cost information Cost Per Equivalen tUnit Direct Material Conversion Total Cost for July in Cutting Department $1,704,480 $809,280 Totla Equivalent Unit                169,600             168,600 Cost/ Equivalent Unit $10.05 $4.80 Cost Charged to production Direct Material Conversion Total Inventory in process, Jan1 $141,020 Cost Incurred in Jan $2,513,760 Total cost accounted for by the Cutting Department $2,654,780 Cost Allocated to Completed and Partially Completed Unit Cost already incurred on Inventory in process on Jan1 ( e ) $141,020 Cost to be incurred to Complete Inventpry in Process, on 1 Jan ( f) $0 $21,120 $21,120 Cost of Completed July1 in progress (e+f) $162,140 Started & Completed in Jan month $1,614,030 $770,880 $2,384,910 Trf to Cutting Departmen in Jan Month $2,547,050 Cost of Inventory in Progress as on 31 Jan $90,450 $17,280 $107,730 Total Cost Assigned by Cutting Department $2,654,780

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