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 credited?

Question

Quizplus · Accepted Answer

When the balls and associated costs are transferred from the molding process to the coloring process, the WIP inventory-molding account is credited. This is because the costs associated with the molding process are completed and transferred to the next process.

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