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

question 181

Essay

At the end of the period,Carson Company had the following balances in selected accounts:
Materials $ 80,000
Finished goods 190,000
Work in process 70,000
Cost of goods sold 1,000,000
Factory overhead 30,000
​
(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?