Q#1: True or false,

Service firms accumulate costs associated with the "work not started" stage of processing in a Raw Materials Inventory account. Q#2:

Orange Company manufactures calculators. During the month, $25,000 of raw materials were purchased, and the warehouse manager transferred $22,500 of direct material to production. Also, during the month, Orange incurred $34,000 of wages for hourly employees, 80% of which was for direct labor. The production supervisor earned $4,200 for the month. What amount will Orange Company debit to Work in Process Inventory for the month?

a. $63,200

b. $59,000

c. $49,700

d. $53,900