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, 100
2.		Applications started in September, 900
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		$1,320
Conversion costs		4,230
September costs:
Direct materials		$3,880
Direct labor		12,210
Overhead		6,968

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

		Materials		Conversion Costs
The equivalent units of service (production)

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

		Materials		Conversion Costs
Unit costs		$		$

3. 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:
Transferred out		$
Work in process, September 30
Materials	$
Conversion costs
Total costs		$