The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Mar. 1 Bal., 8,400 units, 2/3 completed 21,560 31 Direct materials, 151,200 units 302,400 323,960 31 Direct labor 86,530 410,490 31 Factory overhead 48,668 459,158 31 Goods finished, 153,300 units 444,290 14,868 31 Bal.? units, 2/5 completed 14,868 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. Conversion cost per equivalent unit $ 3. Cost of the beginning work in process completed during March $ 4. Cost of units started and completed during March $ 5. Cost of the ending work in process $ b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

Equivalent UnitsWhole UnitsDirect MaterialsConversionInventory in process, March 1840002800Started and completed in March144900144900144900Transferred to Finished goods in March153300144900147700Inventory in process, March 31630063002520Total units to be assigned costs159600151200150220Cost InformationCosts per equivalent unit:Direct MaterialsConversionTotal costs for March in Baking Department302400135198Total equivalent units151200150220Cost per equivalent unit2.000.90Costs charged to production:Direct MaterialsConversionTotalInventory in process, March 121560Costs incurred in March437598Total costs accounted for by the Baking Department459158Cost allocated to completed and partially completed units:Inventory in process, March 1 balance21560To complete inventory in process, March 1025202520Cost of completed March 1 work in process24080Started and completed in March289800130410420210Transferred to Finished goods in March444290Inventory in process, March 3112600226814868Total costs assigned by the Baking Department4591581. Direct materials cost per equivalent unit $2.002. Conversion cost per equivalent unit $0.903. Cost of beginning work in process completed during March $240804. Cost of units started and completed during March $4202105. Cost of the ending work in process $14868bConversion cost per equivalent unit prior period = (21560-8400*2.00)/(8400*2/3)= $0.85Conversion cost per equivalent unit increase