Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sunland Mortgage Company uses a process cost system to accumulate costs in its Application Department. When an application is completed, it is forwarded to the

Sunland 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
$1,410
Conversion costs
4,300
September costs:

Direct materials
$4,640
Direct labor
12,240
Overhead
7,490


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)
1100

900

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



Materials

Conversion Costs
Unit costs
$ ?

$ ?

Step by Step Solution

3.40 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

1 Direct Material Conversion Particulars Units Units Completed application 600 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

12th edition

1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056

More Books

Students also viewed these Accounting questions