The Cutting Department of Tangu Carpet Company provides the following data for December 2012. Assume that all materials are added at the beginning of the process.

a. Prepare a cost of production report for the Cutting Department.
b. Compute and evaluate the change in the cost per equivalent unit for direct materials and conversion from the previous month (November).

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Work in process, December 1,9,000 units, 75% completed *Direct materials (9,000 × $8.55) Conversion (9,000 x75% x $3.90) $ 103,275* $ 76,950 26,325 $103,275 Materials added during December from Weaving Department, 139,000 units Direct labor for December Factory overhead for December Goods finished during December (includes goods in process, December 1), 142,500 units Work in process, December 31, 5,500 units, 30% completed $1,209,300 289,300 260,300