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. Work in process, January 1, 12,800 units, 70% completed $167,424* *Direct materials (12,800 × $10) $128,000 Conversion (12,800 × 70% × $4.4) 39,424 $167,424 Materials added during January from Weaving Department, 197,200 units $1,981,860 Direct labor for January 373,919 Factory overhead for January 457,013 Goods finished during January (includes goods in process, January 1), 199,600 units — Work in process, January 31, 10,400 units, 25% completed — a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places. Karachi Carpet CompanyCost of Production Report—Cutting DepartmentFor the Month Ended January 31, 2016Unit InformationUnits charged to production:Inventory in process, January 1 Received from Weaving Department Total units accounted for by the Cutting Department Units to be assigned costs: Equivalent Units Whole Units Direct Materials ConversionInventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total units to be assigned costs Cost InformationCosts per equivalent unit: Direct Materials ConversionTotal costs for January in Cutting Department $ $Total equivalent units Cost per equivalent unit $ $Costs assigned to production: Direct Materials Conversion TotalInventory in process, January 1 $Costs incurred in January Total costs accounted for by the Cutting Department $Cost allocated to completed and partially completed units: Inventory in process, January 1 balance $To complete inventory in process, January 1 $ Cost of completed January 1 work in process $Started and completed in January $ Transferred to finished goods in January $Inventory in process, January 31 Total costs assigned by the Cutting Department $FeedbackPart B: Additional Computationsb. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places. Increase or Decrease AmountChange in direct materials cost per equivalent unit Increase $Change in conversion cost per equivalent unit Increase $