Question

Baxter Company produces​ children's wiffle ball sets using a threeminusstep sequential process that includes​ molding, coloring and finishing. When the sets are completely​ finished, out of which account should the cost be​ transferred?

Answer 1

Answer:

work in process (WIP) inventory -finishing account

Explanation:

the threeminusstep sequential process requires 3 WIP accounts for Baxter Company:

1. WIP inventory - molding
2. WIP inventory - coloring
3. WIP inventory - finishing

Since the last sequential account is WIP inventory - finishing, then the costs will be transferred from this account when the sets are completely finished.