ABC produces ping pong balls using a three-step process that includes molding,coloring and finishing.Which of the following accounts is debited for conversion costs?

Question

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Conversion costs refer to the costs incurred during the transformation process of raw materials into finished goods. In the case of ABC, the conversion process involves molding, coloring, and finishing. The WIP inventory-finishing account is the account that records the costs incurred during the finishing stage of the conversion process. Therefore, this account is debited for conversion costs.

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