Both the debit and the credit balances in Factory Overhead are closed to Income Summary.

Name: Both the debit and the credit balances in Factory Overhead are closed to Income Summary.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both debit and credit balances in Factory Overhead are closed to Income Summary as part of the process of closing the books at the end of an accounting period. This is done to transfer the balance of Factory Overhead to Income Statement and determine the net income or loss for the period.

Both the Debit and the Credit Balances in Factory Overhead