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

The following information concerns production in the Baking Department for August. 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 Balance
Credit
August 1 Bal., 8,400 units, 3/5 completed 17,556
31 Direct materials, 151,200 units 257,040274,596
31 Direct labor 68,680343,276
31 Factory overhead 38,630381,906
31 Goods finished, 153,300 units 367,66814,238
31 Bal., ? units, 4/5 completed 14,238
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 $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 August $fill in the blank 3
4. Cost of units started and completed during August $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 July and August, did the conversion cost per equivalent unit increase, decrease, or remain the same in August?
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a. & b. Where in the process are direct materials added to the units? Remember that there are two pieces to this manufacturing process, direct materials costs and conversion costs. Recall the definition of work in process.
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