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Question - International Electronics manufactures microchips in large quantities. Each Microchip undergoes assembly and testing. The total assembly cost during January 2019 were:
1. Direct materials used $600,000
2. Conversion costs $700,000
3. Total manufacturing costs $1,300,000
Assume there was no beginning inventory on January, st, 2019. During January 15,000 microchips were placed into production and 10,000 were fully completed, end of January 2019, the remaining 5,000 chips 505 completed as to conversion costs and 100% completed as to direct materials. What is the unit production cost an an assembled microchip end of January 2019? Provide details of your computation.
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