After All Adjustments Have Been Made, but Before the Accounts

question 32

Essay

After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs:
Journalize the entries to close the appropriate accounts.

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Definitions:

Work in Process

Inventory that includes all materials, labor, and overhead costs for products in the process of production but not yet complete.

Factory Overhead

All indirect costs associated with the production of goods, such as utilities, rent, and maintenance of equipment, that are not directly tied to a specific product.

Finished Goods

Items that have finished the production process and are available for purchase.

Factory Overhead

All indirect costs involved in the production process, such as utilities and maintenance, not directly tied to production output.