Question

Cost of Production Report: Average Cost Method

Use the average cost method with the following data:

Work in process, January 1, 7,000 units, 10% completed	$45,080
Materials added during January from Weaving Department, 132,300 units	828,198
Direct labor for January	213,267
Factory overhead for January	167,967
Goods finished during January (includes goods in process, January 1), 129,500 units	—
Work in process, January 31, 9,800 units, 70% completed	—

Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. If required, round your cost per equivalent unit answer to two decimal places.

Dalton Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to finished goods in January
Inventory in process, January 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
		Costs
Total costs for January in Cutting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs assigned to production:
Inventory in process, January 1		$
Costs incurred in January
Total costs accounted for by the Cutting Department		$
Costs allocated to completed and partially completed units:
Transferred to finished goods in January		$
Inventory in process, January 31
Total costs assigned by the Cutting Department		$

Answer 1

Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. If required, round your cost per equivalent unit answer to two decimal places.

Dalton Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended January 31
Unit Information
Units charged to production:
Inventory in process, January 1		7000
Received from Weaving Department		132300
Total units accounted for by the Cutting Department		139300
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to finished goods in January	129500	129500
Inventory in process, January 31	9800	9800*70% = 6860
Total units to be assigned costs	139300	136360
Cost Information
Costs per equivalent unit:
		Costs
Total costs for January in Cutting Department		$1254512
Total equivalent units		136360
Cost per equivalent unit		$9.20
Costs assigned to production:
Inventory in process, January 1		$45080
Costs incurred in January		1209432
Total costs accounted for by the Cutting Department		$1254512
Costs allocated to completed and partially completed units:
Transferred to finished goods in January		$1191400
Inventory in process, January 31		63112
Total costs assigned by the Cutting Department		$1254512