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 credited?
A)WIP Inventory-Molding
B)WIP Inventory-Coloring
C)Raw Materials Inventory
D)WIP Inventory-Finishing

Question

Quizplus · Accepted Answer

When frisbees and associated costs are transferred from the molding process to the coloring process, the WIP Inventory-Molding account is credited. This reflects the movement of costs from one production stage to the next.

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