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Closing Entries - Manufacturing Summary Work in Process...

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CLOSING ENTRIES The closing entries are different for manufacturing and merchandising companies. Manufacturing  companies use a Manufacturing Summary account to close all accounts that appear in the cost of  goods manufactured schedule. The balance of the Manufacturing Summary account is the Cost of  Goods Manufactured for the period. Manufacturing Summary is then closed to Income Summary. Companies can prepare the closing entries from the worksheet. As illustrated below, they first  prepare the closing entries for the manufacturing accounts. The closing entries for Olsen  Manufacturing are as follows.  Work in Process Inventory (Dec. 31) Raw Materials Inventory (Dec. 31) Manufacturing Summary (To record ending raw materials and work in process 
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Unformatted text preview: Manufacturing Summary Work in Process Inventory (Jan. 1) Raw Materials Inventory (Jan. 1) Raw Materials Purchases Factory Depreciation (To close beginning raw materials and work in process inventories and manufacturing cost accounts) Finished Goods Inventory (Dec. 31) (To record ending finished goods inventory and close sales Finished Goods Inventory (Jan. 1) Manufacturing Summary Administrative Expenses (To close beginning finished goods inventory, manufacturing summary, and expense accounts) (To close net income to retained earnings) After posting, the summary accounts will show the following. Summary accounts for a manufacturing company, after posting...
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