The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production.

Date	Item	Debit	Credit	Balance Debit	Balance Credit
August 1	Bal., 4,800 units, 4/5 completed			9,696
31	Direct materials, 86,400 units	129,600		139,296
31	Direct labor	38,170		177,466
31	Factory overhead	21,470		198,936
31	Goods finished, 87,600 units		192,528	6,408
31	Bal., ? units, 2/5 completed			6,408

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	1.5
2. Conversion cost per equivalent unit	0.7
3. Cost of the beginning work in process completed during August	??????
4. Cost of units started and completed during August	182160
5. Cost of the ending work in process	6408

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