Verber Mortgage Company uses a process 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. Applications in process on Beginning WIP:
September 1, 100 Direct materials $1,000
2. Applications started in Conversion costs 4,000
September, 900 September costs:
3. Completed applications during Direct materials $4,000
September, 800 Direct labor 12,000
4. Applications still in progress at Overhead 9,400
September 30 were 100%
complete as to material (forms)
and 60% complete as to conversion
costs
Materials are the forms used in the application process and are incurred in the beginning of the process. Conversion costs are incurred uniformly during the process. compute unit cost for conversion and materials?