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?

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Definitions:

Output Growth Rate

The rate at which the production of goods and services in an economy increases over a specified period.

Taxation

The practice of collecting taxes by a government to fund public services, infrastructure, and other governmental functions.

Regulations

Rules or directives made and maintained by an authority or regulatory body to control or govern conduct within a specific area.

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that can be produced with a fixed amount of resources.