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?A) Finished Goods Inventory
B) WIP InventoryWIP Inventory-Coloring
C) WIP InventoryWIP Inventory-Finishing
D) WIP InventoryWIP Inventory-Molding

Answer 1

Answer:

C) WIP InventoryWIP Inventory-Finishing

Explanation:

Cost of WIP is transferred through Molding to Coloring to the last process of the production finishing. After completing the finishing the balls are ready and the cost is transferred from WIP InventoryWIP Inventory-Finishing to Finished goods Inventory. So, the correct answer is C) WIP InventoryWIP Inventory-Finishing.