Clean Laboratories produces biodegradable liquid detergents that leave no soap film. The production process has been automated, so the product can now be produced in one operation instead of in a series of heating, mixing, and cooling operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. Operating data for July and August follow.

The beginning work in process inventory was 30 percent complete for conversion costs.
The ending work in process inventory for July was 60 percent complete; for August, it was 50 percent complete. Assume that the loss from spoilage and evaporation was negligible.
Required
1. Using the FIFO costing method, prepare a process cost report for July.
2. From the information in the process cost report, identify the amount that should be transferred out of the Work in Process Inventory account, and state where those dollars should be transferred.
3. Repeat requirements 1 and 2 for August.

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July August Beginning work in process inventory: Units (pounds) Direct materials Conversion costs 2,300 4,699 1,219 3,050 Production during the period Units started (pounds) Direct materials Conversion costs 31,500 65,520 $66,91 32,800 S54,213 $54,774 Ending work in process inventory Units (pounds) 3,050 3,600 From calculations at end of July