Question

Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. $108,650 Work in process, January 1, 8,200 units, 65% completed *Direct materials (8,200 x $10.00) Conversion (8,200 x 65% * $5.00) $82,000 26,650 $108,650 Materials added during January from Weaving Department, 126,400 units $1,276,640 Direct labor for January 276,794 Factory overhead for January 338,303 Goods finished during January (includes goods in process, January 1), 127,800 units Work in process, January 31, 6,800 units, 45% completed a. Prepare a cost of production report for the Cutting Department of an amount is vero or a blank, enter in 'O'. For the cost per equivalent unit computations, round your answers to two decimal places.

Answer 1

total loan taken = $1000000

out of this amount purchased equipment =700000$

bank account remaing balanc =300000$

entries ;

1) when loan taken

bank/ cash a/c dr

TO