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 Required: a. The factory overhead balance is relatively small; prepare the journal entry to close the Factory Overhead account assuming a debit balance. If an amount box does not require an entry, leave it blank. 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. If an amount box does not require an entry, leave it blank. What does a credit balance mean?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Required:
a. The factory overhead balance is relatively small; prepare the journal entry to close the Factory Overhead account assuming a debit balance. If an amount box does not require an entry, leave it blank.
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. If an amount box does not require an entry, leave it blank.
What does a credit balance mean?
Transcribed Image Text: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 Required: a. The factory overhead balance is relatively small; prepare the journal entry to close the Factory Overhead account assuming a debit balance. If an amount box does not require an entry, leave it blank. 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. If an amount box does not require an entry, leave it blank. What does a credit balance mean?
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