Challenge Exercise 21-01 a, b1-b2, c (Part Level Submission) Bonita University uses a process cost system to accumulate costs incurred in handling student applications in the admissions department. When an application is completed, it is forwarded to the appropriate academic department for final processing. The following processing and cost data pertain to March. 1. 2. 3. 4. Applications in process on March 1 Applications started in March Completed applications during March Applications still in process at March 31 were 100% complete as to materials (forms) and 80% complete as to conversion costs. 240 990 1,030 Beginning WIP: Direct materials Conversion costs $2,064 8,568 March costs: Direct materials Direct labor Overhead $7,284 36,652 9,520 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. (a) Your answer is correct. Determine the equivalent units of service (production) for materials and conversion costs. Equivalent Units Materials T 1230 Conversion costs T 1190 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 3 of 3 used (61) Your answer is correct. Compute the unit costs. (Round answers to 2 decimal places, e.g. 15.25.) Units materials cost 7.60 Unit conversion cost (62) Your answer is correct. Prepare a cost reconciliation schedule. Bonita University Admissions Department Cost Reconciliation Schedule For the Month of March Costs accounted for: Transferred out T 55208 Work in process, March 31 Materials 1520 Conversion costs 7360 8880 Total Costs 64088 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT (c) In an effort to improve efficiency, Bonita University has changed their admissions procedures. Instead of adding all of the materials at the beginning of the process, they have decided to add half of the materials at the end of the process right before the applications are transferred to the academic departments. This has resulted in a $1,099 savings in March's direct materials costs (beginning direct materials are not affected). Determine the equivalent units of service (production) and the cost per equivalent unit for materials based on this change. If Bonita University processes 11,500 applications during a typical year, what is the total dollar amount of savings that will result from this change? (Round unit material cost to 2 decimal places, e.g. 15.25.) Total equivalent units Units materials cost Total savings Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT Attempts: 0 of 3 used