The debits to Work in ProcessRoasting Department for Daybreak Brew Coffee Company for August, together with information concerning production, are as follows:

Work in process, August 1, 1,200 pounds, 50% completed				$4,320*
	*Direct materials (1,200 X $3)	$3,600
	Conversion (1,200 X 50% X $1.2)	$720
		$4,320
Coffee beans added during August, 38,000 pounds				$112,100
Conversion costs during August				48,880
Work in process, August 31, 2,000 pounds, 50% completed				?
Goods finished during August, 37,200 pounds				?

Question Content Area

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

Direct materials and conversion equivalent units of production for August

Direct materials and conversion costs per equivalent unit for August

Cost of goods finished during August

Cost of work in process at August 31

If an amount box does not require an entry, leave it blank. For the cost per equivalent unit, round your answer to two decimal places.

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.