Fun Stuff Manufacturing produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing. When the balls and associated costs are transferred from the coloring process to the finishing process, which account is credited?

Question

Quizplus · Accepted Answer

When costs are transferred from one work-in-process (WIP) account to another in a sequential production process, the account for the process that is completed (in this case, coloring) is credited.

Fun Stuff Manufacturing Produces Ping Pong Balls Using a Three-Step