The Zippovac Corporation was recently formed to produce a dry battery that forms an essential part of an aircraft component 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. In its first month of operations, 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 batteries were completed. Ending inventory was 50% complete as to conversion costs. Calculate the costs allocated to the chips in ending inventory