Waterway 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, 1.000 3. Completed applications during September, 800 4. Applications still in process at September 30 were 100% complete as to muterials (forms) and 60% complete as to comversion costs: Materiak are the forms used in the application process, and these costs are incurred at the beginnirg of the proces. Conversion costs