Clean Laboratories produces biodegradable liquid detergents that leave no soap film.The production process has been automated, so the product can now be produced inone operation instead of in a series of heating, mixing, and cooling operations. All directmaterials are added at the beginning of the process, and conversion costs are incurreduniformly throughout the process. Operating data for July and August follow. Jul?Au?ust Beginning work in process inventory:Units (pounds)2,3003,050Direct materials$4,699?*Conversion costs$1,219?*Production during the period:Units started (pounds)31,50032,800Direct materials$65,520$66,912Conversion costs$54,213$54,774Ending work in process inventory:Units (pounds)3,0503,600 *From calculations at end of July. 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 wasnegligible.

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 shouldbe transferred out of the Work in Process Inventory account, and state where thosedollars should be transferred.3. Repeat requirements 1 and 2 for August.