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The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production.

ACCOUNT Work in ProcessBaking Department ACCOUNT NO.

Date	Item	Debit	Credit	Balance Debit	Balance Credit
August 1	Bal., 8,100 units, 2/5 completed			14,256
31	Direct materials, 145,800 units	218,700		232,956
31	Direct labor	66,930		299,886
31	Factory overhead	37,650		337,536
31	Goods finished, 147,600 units		324,558	12,978
31	Bal., ? units, 4/5 completed			12,978

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

Line Item Description	Amount
1. Direct materials cost per equivalent unit	$fill in the blank 1
2. Conversion cost per equivalent unit	$fill in the blank 2
3. Cost of the beginning work in process completed during August	$fill in the blank 3
4. Cost of units started and completed during August	$fill in the blank 4
5. Cost of the ending work in process	$fill in the blank 5

b. Assuming that the direct materials cost is the same for July and August, did the conversion cost per equivalent unit increase, decrease, or remain the same in August?

DecreaseIncreaseRemain the same

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