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In: AccountingCost of Production Report: Average Cost MethodUse the average cost method with the following data:...Cost of Production Report: Average Cost MethodUse the average cost method with the following data:Work in process, December 1, 6,700 units, 70% completed$52,997Materials added during December from Weaving Department,126,600 units972,288Direct labor for December239,818Factory overhead for December145,589Goods finished during December (includes goods in process,December 1), 123,900 units—Work in process, December 31, 9,400 units, 10% completed—Prepare a cost of production report for the Cutting Departmentof Tanner Carpet Company for December 2016 using the average costmethod. If required, round your cost per equivalent unit answer totwo decimal places.Tanner CarpetCompanyCost ofProduction Report-Cutting DepartmentFor the MonthEnded December 31, 2016UnitInformationUnits charged toproduction:Inventory in process, December1Received from WeavingDepartmentTotal units accounted for bythe Cutting DepartmentUnits to be assignedcosts:Whole UnitsEquivalent Units of ProductionTransferred to finished goodsin DecemberInventory in process, December31Total units to be assignedcostsCostInformationCosts per equivalent unit:CostsTotal costs for December inCutting Department$Total equivalent unitsCost per equivalent unit$Costs assigned toproduction:Inventory in process, December1$Costs incurred in DecemberTotal costs accounted for bythe Cutting Department$Costs allocated to completedand partially completed units:Transferred to finished goodsin December$Inventory in process, December31Total costs assigned by theCutting Department$