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., 6,600 units, 4/5 completed			13,992
31	Direct materials, 118,800 units	190,080		204,072
31	Direct labor	52,900		256,972
31	Factory overhead	29,756		286,728
31	Goods finished, 120,300 units		276,426	10,302
31	Bal., ? units, 3/5 completed			10,302

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?

DecreaseIncreaseRemain the sameIncrease

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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.