Question

Flying High Manufacturing produces frisbees using a threeminusstep 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​ debited?

Answer 1

Answer and Explanation:

The journal entry is shown below:

WIP inventory - Coloring Dr XXXXX

To WIP inventory - molding XXXXX

(Being the transferring from the molding process to the coloring​ process is recorded)

For recording this we debited the WIP inventory of Coloring as it increased the assets and credited the WIP inventory of Molding as it decreased the assets