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29 July, 11:13

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?

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  1. 29 July, 11:33
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    work in process (WIP) inventory - finishing account

    Explanation:

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

    WIP inventory - molding WIP inventory - coloring 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.
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