Hi-Tech Mortgage Company uses a process costing system to accumulate costs in its loan 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 Beginning work in process September 1, 110 Direct materials $1,140 2. Applications started in Conversion costs 3,950 September, 1,160 September costs: 3. Completed applications during Direct materials 56,480 September, 900 Direct labour 12,000 4. Applications still in process at September 30 were Overhead 10,978 100% complete in terms of materials (forms) and 60% complete in terms of conversion costs 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 Materials Conversion Costs Total equivalent units 1270 1122 Calculate the unit costs and prepare a cost reconciliation schedule. Conversion Costs Materials Total Costs Unit costs Costs in September $ Equivalent units Unit costs $ Costs to be accounted for Work in process, September 1 $ Started into production Total costs $ Cost Reconciliation Schedule Costs accounted for Transferred out $ Work in process, September 30 Materials $ Conversion costs Total costs $