Question 3 Hi-Tech Mortgage Company uses a process costing system to accumulate costs in its loan 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. $1,160 3,880 2. Applications in process on September 1, 80 Applications started in September, 1,180 Completed applications during September, 820 Applications still in process at September 30 were 100% complete in terms of materials (forms) and 60% complete in terms of conversion costs. Beginning work in process: Direct materials Conversion costs September costs: Direct materials Direct labour Overhead 3. $7,660 11,050 11,086 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. (a) Your answer is correct. Determine the equivalent units of service (production) for materials and conversion costs. Conversion Materials Costs Total equivalent units T 12601 1084 Materials Conversion Costs Total Costs Unit costs Costs in September Equivalent units 1260 Unit costs Costs to be accounted for Work in process, September 1 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, September 30 Materials Conversion costs Total costs