Superb Hancock Company uses a process costing system in which all materials are added at the beginning of the first process. Conversion costs are added evenly throughout the process. During the past month, 10,000 units were started in production, and 8,000 were completed and transferred to the next department. There were no beginning inventories. The
ending inventories were 70% complete at the end of the month The company uses a weighted average method for inventory valuation.
If Superb Hancock’s materials used in production cost $15,000 and its conversion costs incurred were $25,000, what is the value (rounded) of the ending work -in-process inventory in the first processing department?