The inventory at November 1 and costs charged to Work in Process - Department X during November are as follows:
- 3,800 units, 3/5 completed -- $60,400
- Direct materials -- $378,000
- Direct labor -- $274,000
- Factory overhead -- $168,000
- Total cost to be accounted for: $880,400
During November, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on November 1. On November 30, the inventory of work in process consisted of 4,600 units which were 4.25/5 completed. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process.
Determine the following, presenting your computations (Prepare your computations using unit cost data to four decimal places, i.e. $4.4444, to minimize rounding differences): Assuming that the direct material cost per unit is the same for October and November, by how much the conversion cost per unit increase and/or decrease from October to November?