(Process Costing) The Micron Corporation produces semiconductor chips that are used by the computer industry. The direct materials are added at the beginning of the production process, while conversion costs are added uniformly throughout the production process. During the month of June, there was no beginning inventory. Direct materials cost for the month totalled $650,000 and conversion costs totalled $1,895,000. During June, a total of 490,000 chips were started and 290,000 chips were completed. The ending inventory was 75% complete as to conversion costs.
- What is the total manufacturing cost per chip for June?
- Determine the costs that would be assigned to
- Finished goods inventory
- Ending work-in-process inventory