Intel Corporation manufactures semiconductor chips using process costing. For the month of July 2024, the assembly process incurs costs of 15 million and produces 100,000 units. At the end of the month, 20,000 units were 40% complete for materials and 30% complete for conversion costs.

Required:

• Calculate the equivalent units of production for materials and conversion costs.
• Determine the cost per equivalent unit for materials and conversion costs.
• Allocate costs to completed units and units in ending work in process inventory using the FIFO method.
• Prepare a cost summary report for the assembly process.
• Analyze the impact of using FIFO vs. weighted average method on cost allocation.