ABC produces ping pong balls using a three-step sequential process that includes molding,coloring and finishing.When the balls and associated costs are transferred from the molding process to the coloring process,which account is debited?

Question

Quizplus · Accepted Answer

When costs and products are transferred from one process to the next in a sequential production process, the Work in Process (WIP) inventory account for the receiving process is debited. In this case, the coloring process is receiving the balls and associated costs from the molding process, so WIP inventory-coloring is debited.

ABC Produces Ping Pong Balls Using a Three-Step Sequential Process