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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 1. Applications in process on September 1, 200 2. Applications started in September, 1,000 3. Completed applications during September, 700 4. Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs. Beginning WIP: Direct materials $1,200 Conversion costs 4,860 September costs: Direct materials $5,160 Direct labor 13,100 Overhead 8,140 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. Determine the equivalent units of service (production) for materials and conversion costs. Materials Conversion Costs The equivalent units of service (production) Compute the unit cost. (Round unit costs to 2 decimal places, 0.9. 2.25.) Materials Conversion Costs Unit costs SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to o decimal places, e.g. 1,225.) Costs accounted for: Transferred out Work in process, September 30 $ Materials $ Conversion costs Total costs