Alpha makes ceramic vases out of specialized clay. During July, it purchased 500 kgs of clay at $60 per kg. It started manufacture of 4,000 vases and completed 3,200 vases during the month. The remaining 800 vases are in process at the end of the month. It incurred direct labor charges of $500 and other conversion costs of $400, which included electricity costs of $200. Alpha had no beginning or ending inventory of DM (clay). It also had no beginning inventory of vases. At the end of the period, the 800 vases in progress were 100% complete for direct materials (DM) and 50% complete for conversion costs.

12) What is the total conversion costs for the month of July?