multistep

Question 5 of 9 -/8 Lily 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. 1. 2. 3. Applications in process on September 1, 100 Applications started in September, 1,000 Completed applications during September, 800 Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs. 4. $1,380 4,860 Beginning WIP: Direct materials Conversion costs September costs: Direct materials Direct labor Overhead $5,300 12,300 10,448 2 LI 21 HW + Question 5 of 9 -18 iii 4,860 Conversion costs September costs: Direct materials Direct labor Overhead $5,300 12,300 10,448 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. Lily Mortgage Company uses the FIFO method. Also, assume that the applications in process on September 1 were 100% complete as to materials (application forms) and 40% complete as to conversion costs. (a) Determine the equivalent units of service (production) for materials and conversion costs. Materials Conversion Costs N w ER hp