ComBand Corporation produces a semiconductor chip used in communications. The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process. ComBand had no inventory at the start of June. During the month, it incurred direct materials costs of $980,000 and conversion costs of $4,740,000. ComBand started 500,000 chips and completed 300,000 of them in June. Ending inventory was 50% complete as to conversion costs. Compute (a) the equivalent units of work done in June, and (b) the total manufacturing cost per chip. Allocate the total costs between the completed chips and those in ending inventory. Compute (a) the equivalent units of work done in June. Enter the physical units in first, then calculate the equivalent units. (Enter a "O" for any zero balances.) Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process, beginning 0 500,000 Started during current period To account for Completed and transferred out during current period: Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period 0.7.20 Begin by calculating cost per equivalent unit for direct materials and conversion costs. Direct Conversion Materials Costs Divide by Cost per equivalent unit Finally, assign total costs to units completed (and transferred out) and to units in ending work in process. Total Direct Conversion Production Costs Materials Costs Completed and transferred out Work in process, ending Total costs accounted for