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 Balance
Debit Credit
August 1 Bal., 36,000 units, ¾ completed 207,360
31 Direct materials, 200,000 units 450,000 657,360
31 Direct labor 207,900 865,260
31 Factory overhead 680,400 1,545,660
31 Goods finished, 196,000 units 1,361,660 184,000
31 Bal., ? units, ½ completed 184,000
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 $ 2.29 X
2. Conversion cost per equivalent unit 4.40 X
3. Cost of the beginning work in process completed during August $ 82,440 X
4. Cost of units started and completed during August $ 448,400 X
5. Cost of the ending work in process 2.29 X
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