Lui Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at March 31:

Date	Item	Debit	Credit	Balance Debit	Balance Credit
March 1	Bal., 7,500 units, 2/5 completed			13,500
31	Direct materials, 337,500 units	573,750		587,250
31	Direct labor	109,000		696,250
31	Factory overhead	27,240		723,490
31	Goods transferred, 338,000 units		?
31	Bal., ? units, 4/5 completed			?

Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in ProcessRoasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to the nearest cent.

2. Assuming that the March 1 work in process inventory includes $12,000 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to two decimal places.