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, 900
3.		Completed applications during September, 600
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		$1,490
Conversion costs		4,260
September costs:
Direct materials		$4,680
Direct labor		12,100
Overhead		8,154

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. Santana 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.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Determine the equivalent units of service (production) for materials and conversion costs.

		Materials		Conversion Costs
The equivalent units of service (production)

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New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Compute the unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

		Materials		Conversion Costs
Unit costs		$		$

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New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

Costs accounted for:
Applications completed:
Work in process, September 1		$
Conversion costs				$
Started and completed						$
Work in process, September 30:
Materials
Conversion costs
Total costs						$