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 credited?

Question

Quizplus · Accepted Answer

When the balls and associated costs are transferred from the molding process to the colouring process, the WIP inventory account for the molding process is credited since the costs are leaving that process and entering the next.

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