a.) determine the equivalent units of service (production) for materials and conversion costs.

b.) compute the unit cost for materials and conversions costs

c.) prepare a cost reconciliation schedule

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 Applications in process on September 1, 200 Applications started in September. 900 Completed applications during September, 600 Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs. $1,200 4.940 Beginning WIP: Direct materials Conversion costs September costs: Direct materials Direct labor Overhead $4,630 12,790 5.760 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