At the End of the Period, Carson Company Had the Following

question 69

Essay

At the end of the period, Carson Company had the following balances in selected accounts:​​ $\begin{array}{lr}\text { Materials } & 80,000 \\\text { Finished goods } & 190,000 \\\text { Work in process } & 70,000 \\\text { Cost of goods sold } & 1,000,000 \\\text { Factory overhead } & 30,000\end{array}$ (a)The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a debit balance. What does a debit balance mean?
(b)The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a credit balance. What does a credit balance mean?

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Definitions:

Delaying Action

A tactical or strategic decision to postpone an action or decision in order to gain more time, information, or advantage.

Withdrawal Mechanism

Psychological or physical strategies used by individuals to disengage or disconnect from stressful or uncomfortable situations.

Managing Interpersonal Conflict

The process of handling personal disagreements or disputes in a constructive and respectful manner.

Rationalization

The process of finding logical explanations for behaviors, decisions, or feelings that may otherwise appear irrational.