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 Process$$Baking Department ACCOUNT NO$.$

Date

Item

Debit

Credit Balance

Debit Balance

Credit

August $1$ Bal., $7,500$ units, $2/5$ completed $16,500$

$31$ Direct materials, $135,000$ units $256,500273,000$

$31$ Direct labor $70,840343,840$

$31$ Factory overhead $39,848383,688$

$31$ Goods finished, $136,800$ units $369,21014,478$

$31$ Bal., $?$ units, $4/5$ completed $14,478$

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 $1$

$273,000$

$2.$ Conversion cost per equivalent unit $fill in the blank $2$

$39,848$

$3.$ 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 $5$

$136,800$

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