Test Company uses a normal, process costing system to determine product cost. The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process. The product passes through two departments: Department 1 and Department 2. In Department 1, all direct materials are added at the beginning of the process. The following information is available for Department 1 in July. Work-in-process, July 1 Units 5,000 units Costs Direct materials $25,000 Conversion cost 16,000 July activity Units Started into production 50,000 units Completed and transferred out 45,000 units Costs added Direct materials Conversion cost Percentage of completion Work-in-process, July 1 $400,000 183,750 40% Work-in-process, July 31 60% Note: Round all calculations to two decimal points. Round dollar amounts to the nearest dollar. Determine the cost of work-in-process inventory on July 31