The following information concerns production in the Baking Department for December. 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		Credit
Dec.	1	Bal., 4,800 units, 3/5 completed					10,032
	31	Direct materials, 86,400 units	146,880				156,912
	31	Direct labor	39,240				196,152
	31	Factory overhead	22,080				218,232
	31	Goods finished, 87,600 units			210,096		8,136
	31	Bal., ? units, 4/5 completed					8,136

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

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 December	$fill in the blank 3
4. Cost of units started and completed during December	$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 November and December, did the conversion cost per equivalent unit increase, decrease, or remain the same in December?

DECREASE, INCREASE, REMAIN THE SAME