Fun Stuff Manufacturing 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 coloring process to the finishing process, which account is credited?
A)WIP Inventory-Coloring
B)WIP Inventory-Molding
C)Raw Materials Inventory
D)WIP Inventory-Finishing

Question

Quizplus · Accepted Answer

When the balls and associated costs are transferred from the coloring process to the finishing process, the WIP Inventory-Coloring account is credited. This reflects the movement of costs from one production stage to the next in process costing.

Fun Stuff Manufacturing Produces Ping Pong Balls Using a Three-Step