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The Zygon Corporation was recently formed to produce a semicondictor chip that forms an essential part of the personal computer manufactured by a major corporation. the direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process. June is Zygon's first month totaled $895,000 while conversion costs equaled $4225,000. Accounting records indicate that 475,000 chips were started in June and 425,000 chips were completed.
Ending inventory was 50% complete as to conversion costs.
Required:
a. What is the total manufacturing cost per chip for June?
B. Allocate the total costs between the completed chips and the chips in ending inventory.
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