eBook Cost of Production Report The Cutting Department of Tangu Carpet Company p
ID: 2574192 • Letter: E
Question
eBook
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.
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, 2014
Inventory in process, December 1
Received from Weaving Department
Total units accounted for by the Cutting Department
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
Direct Materials
Conversion
Total costs for December in Cutting Department
$
$
Total equivalent units
Cost per equivalent unit
$
$
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
$
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.
Check My Work (2 remaining)
Work in process, December 1, 13,000 units, 80% completed $152,880* *Direct materials (13,000 × $8.00) $104,000 Conversion (13,000 × 80% × $4.70) 48,880 $152,880 Materials added during December from Weaving Department, 200,400 units $1,633,260 Direct labor for December 431,254 Factory overhead for December 527,088 Goods finished during December (includes goods in process, December 1), 202,800 units — Work in process, December 31, 10,600 units, 30% completed —Explanation / Answer
Tangu Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, 2014 Inventory in process, December 1 13000 Received from Weaving Department 200400 Total units accounted for by the Cutting Department 213400 Equivalent Units Whole Units Direct Materials Conversion Inventory in process, December 1 13000 0 2600 Started and completed in December 189800 189800 189800 Transferred to finished goods in December 202800 189800 192400 Inventory in process, December 31 10600 10600 3180 Total units to be assigned cost 213400 200400 195580 Costs per equivalent unit: Total costs for December in Cutting Department 1633260 958342 Total equivalent units 200400 195580 Cost per equivalent unit 8.15 4.9 Direct Materials Conversion Total Inventory in process, December 1 152880 Costs incurred in December 2591602 Total costs accounted for by the Cutting Department 2744482 Costs allocated to completed and partially completed units Inventory in process, December 1 balance 152880 To complete inventory in process, December 1 12740 12740 Cost of completed December 1 work in process 165620 Started and completed in December 1546870 930020 2476890 Transferred to finished goods in December 2642510 Inventory in process, December 31 86390 15582 101972 Total costs assigned by the Cutting Department 2744482 b Increase or Decrease Amount Change in direct materials cost per equivalent unit Increase 0.15 Change in conversion cost per equivalent unit Increase 0.2
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