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. 2. 3. 1. Applications in process on September 1, 200 Applications started in September, 1,000 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 Overhead 13,100 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. to search 0 E 1992 Q