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 September 1, 80 Applications started in September, 1,000 Completed applications during September, 800 Applications still in process at September 30 were 100% complete in terms of materials (forms) and 60% complete in terms of conversion costs Beginning work in process: Direct materials $1,000 2. Conversion costs 3,800 September costs: $4,400 10,000 9,432 3. Direct materials Direct labour Overhead 4. 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 Your answer is correct. Determine the equivalent units of service (production) for materials and conversion costs Conversion Costs Materials Total equivalent units 1080 968