The Fortune Fortune Company uses an order-based costing system for its production costs. During the current period, 1,000 seats were printed and assembled for Order No. 25. The total costs incurred for the order are:

Raw material $15,000

Labor (500 hours x $11 per hour) $5,500

Factory Overhead ($22 per Labor hour) $11,000

Total Cost Order No. 25 $ 31,500

Prior to being transferred to Finished Goods Inventory, chairs were inspected and 100 units were found to be defective. Defective chairs cannot be repaired as the defect lies in the plastic but can be sold for $11 per unit. The Company maintains a separate Defectives Inventory account for defects and charges the costs not covered by the sale of the defectives to the Factory Overhead Control account.

Requested:

Calculate the cost of Order No. 25 transferred to Finished Goods Inventory and Defective Goods Inventory, and make general journal entries to record the costs of the defect and the transfer.