Hot Tamale Company Had $120,000 of Revenues and $125,000 of Expenses

question 59

Essay

Hot Tamale Company had $120,000 of Revenues and $125,000 of Expenses. No dividends were paid. Please provide the third of the year-end closing entries.

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Definitions:

Cost System

A method used to allocate costs to products, services, or projects in order to assess financial performance and profitability.

Process Inventory

Inventory that includes all the direct costs and manufacturing overhead involved in the production process until the goods are finished.

Processing Department

A specialized division within a manufacturing or processing company where raw materials are transformed into finished goods.

Cost System

A method or process adopted by a company to collect and analyze its costs for managerial decision-making.