Costs per Equivalent Unit

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 Process$$Baking Department ACCOUNT NO$.$

Date

Item

Debit

Credit Balance

Debit Balance

Credit

August $1$ Bal., $7,800$ units, $3/5$ completed $17,550$

$31$ Direct materials, $140,400$ units $252,720270,270$

$31$ Direct labor $71,640341,910$

$31$ Factory overhead $40,296382,206$

$31$ Goods finished, $142,200$ units $369,48612,720$

$31$ Bal., $?$ units, $2/5$ completed $12,720$

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?

Increase