Lansing, Inc. began April with an inventory of 2,500 units. Its production process incurs conversion costs uniformly. It started 72,500 units into production.

Lansing, Inc. determines that the 3,500 units in its ending WIP is 90% complete for conversion and values this inventory (before adjustments for any spoilage cost) at $20 per unit. It also determines that the cost of the completed units is $1,493,625 (before any adjustments).

Based on inspection (at the 40% point), Lansing, Inc. determines that the cost of the 250 units of normal spoilage is $3,750. The cost of the 125 units of abnormal spoilage is $1,750.

What is the adjusted cost of the ending WIP (in $)? Note that you do not have much of the information to complete a template. The question deals with the treatment for the cost of spoilage.