Refer to requirement 2 of Exercise 4.11.

Required

Prepare summary journal entries for the use of direct materials and conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the Work in Progress account.

Data From Exercise 4.11:

2. Assume that during February 10,000 microchips were placed into production. Further assume the same total assembly costs for January are also incurred in February, but only 9000 microchips are fully completed at the end of February. All direct materials had been added to the remaining 1000 microchips. However, on average, these remaining 1000 microchips were only 50% complete as to conversion costs. (a) What are the equivalent units for direct materials and conversion costs and their respective equivalent-unit costs for February? (b) What is the unit cost of an assembled microchip in February?