Data for Orlando Company for the Month of June 20xx

Essay

Data for Orlando Company for the month of June 20xx are as follows:
$\begin{array}{ll}\text { Beginning work in process inventory: } & \text { Operations for the month of June: } \\\text { Units - } 800 & \text { Units started-14,000 } \\\text { Direct materials }-100 \% \text { complete } & \text { Direct materials costs- } \$ 57,400 \\\text { Conversion costs- } 70 \% \text { complete } & \text { Conversion costs- } \$ 50,122\\\text { Direct materials costs \( -\$ 2,860 \)}\\\text { Conversion costs- \( \$ 2,150 \)}\\\text { Ending work in process inventory:}\\\text { Units - 1,500}\\\text { Direct materials \( -100 \% \) complete}\\ \text { Conversion costs- \( 30 \% \) complete}\end{array}$ Assume the company uses a FIFO flow of costs.
a. Prepare a process cost report for July.
b. Identify the amount that should be transferred out of the Work in Process Inventory account, and state where those dollars should be transferred.