Lisa's Sugar Company manufactures soda by a series of four processes. $..$Crushing, Heating and Clarification, Crystallization and then Packaging into a bag of sugar.

The balance of the WIP $-$Crystallization Dept $(14,000$ units, $60\%$ complete$)$ as follows at January $1,2024$ :

Direct Materials $(14,0002\mathrm{.}40),$$$33,600$

Conversion $(14,00060\%$$$0\mathrm{.}80),\frac{6,720}{\text{\$}40,320}$

The following costs were charged to WIP$-$Crystallization Department during August:

Direct Materials $($transferred from Heating and Clarification Dept.: $310,000$ units

At $$2\mathrm{.}50$ a unit

$775,000$

$180,000$

$29,250$

Direct Labour

Factory Overhead

During January, $320,000$ units of sugar were completed. Work In Process$-$Crystallization Dept on January $31,2024$ was $9,000$ units, $80\%$ completed.

TO DO:

Prepare a Cost of Production report for the Crystallization dept. for January.

Journalize the entries for costs transferred from Heating and Clarification Dept. and the costs transferred from Crystallization to packaging.

Determine increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs.