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...