Garcia 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.

September Transactions

No.	Transactions
1.	applications in process on September 1 are 100
2.	applications started in September are 1,000
3.	Completed applications during September are 800
4.	Application still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs.

Production and Manufacturing costs

Production cost information	cost
beginning WIP:
Direct materials	$1,400
Conversion costs	$4,250
September costs
direct materials	$4,760
direct labor	$12,680
overhead	$8,550

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 prcess.

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

(Hint: calculate ending inventory first)

Responses - Equivalent Units

	materials	conversion costs
the equivalent units of determine the costs of production.

(hint: divide costs by the equivalent units calculated.)

round unit costs to 2 decimal places, e.g. 2.25.

Response - Unit Costs

	materials	conversion
unit costs prepare a cost reconciliation schedule	$	$

(hint: you need to multiply equivalent units for each cost by its unit cost.)

Round your answer to 0 decimal places, e.g. 10,000.

Responses - Manufacturing Costs

Cost Accounted for:

transferred out		$
work in process, September 30
Materials	$
Conversion Costs	$	$
Total Costs		$