Prepare a cost of production report for the Cutting Department of Chota Carpet Company for October 2010. Use the average cost method with the following data:

Work in process, October 1, 9,000 units, 75% completed $ 75,000
Materials added during October from Weaving Department, 105,000 units 807,750
Direct labor for October 175,200
Factory overhead for October 92,100
Goods finished during October (includes goods in process, October 1),
103,500 units —
Work in process, October 31, 10,500 units, 10% completed —