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In: AccountingCost of Production ReportThe Cutting Department of Karachi Carpet Company provides thefollowing data for...Cost of Production ReportThe Cutting Department of Karachi Carpet Company provides thefollowing data for January. Assume that all materials are added atthe beginning of the process.Work in process, January 1, 12,200 units, 75% completed$132,065* *Direct materials (12,200 × $7.6)$92,720 Conversion (12,200 × 75% × $4.3)39,345$132,065Materials added during January from Weaving Department, 188,000units $1,457,000Direct labor for January 364,419Factory overhead for January 445,401Goods finished during January (includes goods in process, January1), 190,200 units —Work in process, January 31, 10,000 units, 30% completed —a. Prepare a cost of production report for the CuttingDepartment. If an amount is zero or a blank, enter in "0". For theThe rate used to allocate costs between completed and partiallycompleted production.cost per equivalent unit computations, roundyour answers to two decimal places.Karachi Carpet CompanyCost of Production Report-Cutting DepartmentFor the Month Ended January 31Unit InformationUnits charged to production:Inventory in process, January 1Received from Weaving DepartmentTotal units accounted for by the Cutting DepartmentUnits to be assigned costs:Equivalent UnitsWhole Units Direct Materials ConversionInventory in process, January 1Started and completed in JanuaryTransferred to finished goods in JanuaryInventory in process, January 31Total units to be assigned costCost InformationCost per equivalent unit:Direct Materials ConversionTotal costs for January in Cutting Department $ $Total equivalent unitsCost per equivalent unit $ $Costs assigned to production:Direct Materials Conversion TotalInventory in process, January 1 $Costs incurred in JanuaryTotal costs accounted for by the Cutting Department $Costs 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 31Total costs assigned by the Cutting Department $Feedbackb. Compute and evaluate the change in cost per equivalent unitfor direct materials and conversion from the previous month(December). If required, round your answers to two decimalplaces.Increase or Decrease AmountChange in direct materials cost per equivalent unit IncreaseDecreaseIncrease$Change in conversion cost per equivalent unit IncreaseDecreaseIncrease$