Baxter Company produces Frisbees using a threeminusstep sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated Manufacturing Overhead?

The options are:

A) When the Frisbees are in WIP InventoryWIP Inventory-Molding

B) When the Frisbees are in WIP InventoryWIP Inventory-Finishing

C) When the Frisbees are in WIP InventoryWIP Inventory-Coloring

D) All of the above

D) All of the above

Explanation:

Manufacturing overhead is defined as all manufacturing cost incurred in producing a good that cannot be traced directly to the product in an economically feasible way.

For example processes in Work In Process stage of manufacturing such as labour and utility expenses are manufacturing overhead costs. Work in process is the manufacturing stage where goods are converted from raw goods to partially finished goods.

So all the options given which are on the WIP are correct.