Data for Orlando Company for the Month of June 20xx

question 104

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 - 1500}\\\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.
$\$ 2,150$ }\\ \text { Ending work in process inventory:}\\ \text { Units - 1500}\\ \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. " class="answers-bank-image d-block" rel="preload" >

Recognize the importance of joint costs and the split-off point in decisions related to further processing.

Identify the role of fixed and variable costs in product discontinuation decisions.

Understand the concept of vertical integration and its implications for economies of scale and control over the supply chain.

Grasp the role of contribution margin and contribution margin ratio in making product-related decisions.

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Definitions:

Bryophytes

A group of plant species that includes mosses, liverworts, and hornworts, characterized by lacking vascular tissue.

Ferns

A group of non-flowering plants that reproduce via spores and have neither seeds nor flowers. They have large fronds and are often found in moist, shaded areas.

Gymnosperms

A group of seed-producing plants that includes conifers, cycads, Ginkgo, and gnetophytes, characterized by seeds that are not enclosed in an ovary.

Gnetophyta

A division of gymnosperms, with characteristics that share some similarities to angiosperms, including the genera Ephedra, Gnetum, and Welwitschia.