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​ credited?

A. Raw Materials Inventory
B. WIP InventoryminusFinishing
C. WIP InventoryminusMolding
D. WIP InventoryminusColoring

Answer 1

Answer:

C. WIP InventoryminusMolding

Explanation:

Crediting is the amount or the items leaving the account, so since the Molding inventory is the one letting go of things, this is in the positive part of the T graph, so since it is having a credit, since it is providing it, the C. WIP InventoryminusMolding  is the one that is being credited, on the other hand you should debit the WIP InventoryminusColoring since it is the one receiving the products.