Hallow Company produces ping pong balls using a three-step sequential process that includes molding,coloring and finishing.At what stage would the ping-pong balls be allocated manufacturing overhead?
A)When the balls are in WIP inventory─molding
B)When the balls are in WIP inventory─finishing
C)When the balls are in WIP inventory─coloring
D)All of the above

Question

Quizplus · Accepted Answer

Manufacturing overhead is allocated to WIP inventory at all stages of the sequential process - molding, coloring, and finishing. Therefore, choice D is the correct answer.

Hallow Company Produces Ping Pong Balls Using a Three-Step Sequential