Examlex
The Zygon Corporation was recently formed to produce a semiconductor 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 of operations, and therefore, there was no beginning inventory. Direct materials cost for the month totaled $895,000, while conversion costs equaled $4,225,000. 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.
Total Utility
The total satisfaction or benefit received by consuming a good or service.
Utility Schedule
A table or chart displaying various combinations of goods or services and the utility or satisfaction obtained from each combination.
Diminishing Marginal Utility
The principle that as a person increases consumption of a product, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.
Utility Schedule
A table or graph that displays an individual's or group's satisfaction or utility levels derived from consuming different amounts of a good or service.
Q27: In order for a process-costing system to
Q35: Discuss the methods used to identify quality
Q39: In general, it is presumed that normal
Q45: Customers making large contributions to the profitability
Q56: When considering customer needs and wants, only
Q80: The Glass Shop, a manufacturer of large
Q80: Companies that would benefit from backflush costing
Q82: _ occurs where revenues, related but NOT
Q122: When using a physical-volume measure, what is
Q145: Partial productivity multiplied by the quantity of