Belle Technologies specializes in making surgical instruments. The production process begins with a block of specially formulated, surgical-quality stainless steel. The instrument is formed after a number of operations to shape and trim the metal. The final step in the operation is to test each instrument for manufacturing and other defects.
Belle began August with 500 instruments in work-in-process inventory. The 500 instruments were valued at $120,000, comprising $75,000 in materials plus $45,000 in conversion costs. During August, Belle started another 4,500 instruments into production, completing a total of 4,600 instruments by month's end. Belle estimates that the units still in process on August 31 are 40% complete with respect to conversion costs. Finally, Belle spent $685,000 on materials costs, $1,335,400 on conversion costs, and $828,000 on testing costs during August.
Required:
Prepare Belle's process-costing report for August.