Royale Mortgage Company uses a process cost 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.

Beginning WIP: Direct materials $1,130 Conversion costs 4,670 September costs: Direct materials $5,140 Direct labor 12,210 Overhead 8,688

1. Applications in process on September 1, 200 2. Applications started in September, 900 3. Completed applications during September, 700 Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs

? Determine the equivalent units of production for Materials and Conversion Costs ? Compute unit cost for Materials and Conversion Costs ? Prepare a cost reconciliation schedule.