Question

Flying high manufacturing produces frisbees using a threeminus−step sequential process that includes​ molding, coloring and finishing. when the frisbees and associated costs are transferred from the molding process to the coloring​ process, which account is​ credited?

Answer 1

Answer: WIP Inventory

Explanation: WIP stands for work in progress inventory. WIP, is part of the inventory asset accounting process to balance numbers on the balance sheet. WIP is all raw materials, labor, and overhead costs that come from the production of goods or services.

Answer 2

When the frisbees and associated costs are transferred from the molding process to the coloring​ process WIP Inventory-Molding is credited. WIP inventory stands for Work in Process inventory, that are the materials that have been partially converted through the production process. In this case from molding process to the coloring process.