E3.15 (LO 3, 4), AP Service 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. Determine equivalent units, unit costs, and assignment of costs. 1. Applications in process on Beginning WIP: September 1: 100. Direct materials $ 1,000 2. Applications started in Conversion costs 3,960 September: 1,000. September costs: 3. Completed applications during Direct materials $ 4,500 September: 800. Direct labor 12,000 Applications still in process at September 30: 100% complete as to materials (forms) 4. and 60% complete as to conversion costs. Overhead 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. Instructions a. Determine the equivalent units of service (production) for materials and conversion costs. b. Compute the unit costs and prepare a cost reconciliation schedule