Santana Mortgage Company uses a process costing 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, 130 2.
Applications started in September, 980 3. Completed applications
during September, 750 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 $1,170
Conversion costs 4,860 September costs: Direct materials $4,733
Direct labor 13,000 Overhead 9,174 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. Santana Mortgage Company uses the FIFO method.
Also, assume that the applications in process on September 1 were
100% complete as to materials (forms) and 40% complete as to
conversion costs. Determine the equivalent units of service
(production) for materials and conversion costs. Materials
Conversion Costs The equivalent units of service (production) LINK
TO TEXT LINK TO TEXT Compute the unit costs. (Round unit costs to 2
decimal places, e.g. 2.25.) Materials Conversion Costs Unit costs $
$ LINK TO TEXT LINK TO TEXT 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: Applications
completed: Work in process, September 1 $ Conversion costs $
Started and completed $ Work in process, September 30: Materials
Conversion costs Total costs $ Click if you would like to Show Work
for this question: Open Show Work