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

Question

Quizplus · Accepted Answer

When the balls and associated costs are transferred from the molding process to the colouring process, the Work in Process (WIP) inventory for the colouring process is debited. This reflects the movement of the balls into the next stage of production and the associated costs being allocated to that stage.

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