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 manufacturing process, the account for the process from which the costs are being transferred is credited. In this case, WIP Inventory-Molding is credited as the costs move to the coloring process.

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