Work in process, January 1, 3,400 units, 75% completed $ 23,000
Materials added during January from Weaving Department, 64,000 units 366,200
Direct labor for January 105,100
Factory overhead for January 80,710
Goods finished during January (includes goods in process, January 1), 63,500 units —
Work in process, January 31, 3,900 units, 10% completed —
Answer:
DALTON CARPET COMPANY
Cost of Production Report—Cutting Department
For the Month Ended January 31, 2014
UNITS
Whole
Units
Equivalent Units
of Production
Units charged to production:
Inventory in process, January 1 3,400
Received from Weaving Department 64,000
Total units accounted for by the
Cutting Department 67,400
Units to be assigned cost:
Transferred to finished goods in January 63,500 63,500
Inventory in process, January 31
(10% completed) 3,900 390*
Total units to be assigned cost 67,400 63,890
* 10% × 3,900 units
COSTS
Costs per equivalent unit:
Total costs for January in Cutting Department $575,0101
Total equivalent units ÷ 63,890
Cost per equivalent unit $ 9.00
Costs assigned to production:
Inventory in process, January 1 $ 23,000
Costs incurred in January 552,010 2
Total costs accounted for by the Cutting Department $575,010
Costs allocated to completed and partially completed units:
Transferred to finished goods in January
(63,500 units × $9.00) $571,500
Inventory in process, January 31
(3,900 units × 10% × $9.00) 3,510
Total costs assigned by the Cutting Department $575,010
1 $23,000 + $366,200 + $105,100 + $80,710
2 $366,200 + $105,100 + $80,710