After All of the Account Balances Have Been Extended to the Income

question 185

Multiple Choice

After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $77,500 and $85,300, respectively. What is the amount of the net income or net loss for the period?

• A) $7,800 net income
• B) $7,800 net loss
• C) $85,300 net income
• D) $77,500 net loss

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Definitions:

Process Costing

An accounting methodology used in manufacturing, where costs are assigned to batches or process levels, suitable for homogeneous products.

Cost Of Production Report

A document detailing the total cost incurred to produce goods or services, often used in manufacturing to track expenses.

Transferred-In Costs

Costs associated with goods that are moved from one production process to another within a manufacturing environment.

Transferred-In Costs

Costs accumulated during a process that are moved to a subsequent process or stage in production.