Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January 2014. Use the average cost method with the following data:
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............—