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Category > Management Posted 02 Jan 2018 My Price 9.00

Royale Mortgage Company

E3-15 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Applications in process on

Beginning WIP:

  

September 1, 100

Direct materials

$ 1,000

2. Applications started in

Conversion costs

3,960

September, 900

September costs:

  

3. Completed applications during

Direct materials

$ 4,500

September, 800

Direct labor

12,000

4. Applications still in process at

Overhead

9,340

September 30 were 100% complete as to materials (forms)

and 60% complete as to conversion costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

Instructions

(a) Determine the equivalent units of service (production) for materials and conversion costs.

(b) Compute the unit costs and prepare a cost reconciliation schedule.

Answers

Maurice Tutor
(5)
Status NEW Posted 02 Jan 2018 10:01 PM My Price 9.00

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