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 July with zero instruments in process. During July, Belle began work on 4,000 instruments, completing 3,500 by month's end. Belle estimates that the units still in process as of July 31 are 30% complete with respect to conversion costs. Finally, Belle spent $600,000 on materials costs, $1,095,000 on conversion costs, and $612,500 on testing costs during July.
Required:
Prepare Belle's process-costing report for July.