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

Question

Quizplus · Accepted Answer

When the frisbees and associated costs are transferred from the molding process to the coloring process, the appropriate account to debit would be WIP inventory - coloring as this represents the work in progress in the coloring stage.

Fun Stuff Manufacturing Produces Frisbees Using a Three-Step Sequential Process