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 credited?

Question

Quizplus · Accepted Answer

When costs are transferred from one process to another in a sequential production process, the account for the process from which the costs are being transferred (in this case, WIP inventory-molding) is credited.

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