The Income Statement for the Month of June, 2021 of Camera

question 113

Multiple Choice

The income statement for the month of June, 2021 of Camera Obscura Enterprises contains the following information: The entry to close Income Summary to Retained Earnings includes

• A)a debit to Revenues for $7,000.
• B)credits to Expenses totalling $5,700.
• C)a credit to Income Summary for $1,300
• D)a credit to Retained Earnings for $1,300.

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Definitions:

Production Departments

Specific areas within a manufacturing facility where particular aspects of the production process are performed.

Customizing Department

A division within a company that modifies products to meet specific customer requirements or preferences.

Machine-Hours

A measure of the amount of time a machine is operated.

Direct Labor-Hours

Direct Labor-Hours refer to the total hours worked by employees who are directly involved in the production process, affecting the cost of goods.