Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department....

Royale Mortgage Company uses a process cost 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.

Beginning WIP:
Direct materials $1,130
Conversion costs 4,670
September costs:
Direct materials $5,140
Direct labor 12,210
Overhead 8,688

1. Applications in process on September 1, 200
2. Applications started in September, 900
3. Completed applications during September, 700
Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs

? Determine the equivalent units of production for Materials and Conversion Costs
? Compute unit cost for Materials and Conversion Costs
? Prepare a cost reconciliation schedule.

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ekkarill92 answered 1 year ago

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