Swifty 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. 2. Applications in process on September 1, 200 Applications started in September, 900 Completed applications during September, 600 Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs. 3. 4. Beginning WIP: Direct materials $1,380 Conversion costs 5,060 September costs: Direct materials $4,140 Direct labor 12,800 Overhead 7,700 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. Swifty 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. a. Determine the equivalent units of service (production) for materials and conversion costs. b. Compute the unit costs C. Prepare a cost reconciliation schedule