Santana Mortgage Company uses a process cost system to accumulate costs in its Application Department. When an application is completed, it is forwarded to the Loan Department for final processing. The following processing and cost data pertain to September. 1. Applications in process on September 1, 160 2. Applications started in September, 1,000 3. Completed applications during September, 740 4. Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs.

Beginning WIP:

Direct materials $1,160

Conversion costs 4,190

September costs:

Direct materials $4,814

Direct labor 12,570

Overhead 9,657

Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.

Determine the equivalent units of service (production) for materials and conversion costs. Materials Conversion Costs The equivalent units of service (production)

Compute the unit cost. (Round unit costs to 2 decimal places, e.g. 2.25.)

Materials Conversion Costs Unit costs

Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Costs accounted for:

Transferred out $ Work in process, September 30

Materials

Conversion costs

Total costs $