Flying High 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 account debited would be the Work in Process (WIP) Inventory-Coloring, as this is the account for the goods and costs in process of being colored. Option A is incorrect as the goods have already been completed in the molding process. Option C is incorrect as raw materials are not being transferred between processes. Option D is incorrect as the frisbees have not yet reached the finishing process.

Flying High Manufacturing Produces Frisbees Using a Three-Step Sequential Process