Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January 2016. 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 ...................... -