At the end of the period, Carson Company had the following balances in selected
ID: 2399968 • Letter: A
Question
At the end of the period, Carson Company had the following balances in selected accounts: Materials Finished goods Work in process Cost of goods sold Factory overhead $80,000 190,000 0,000 1,000,000 30,000 Required: (a) The factory overhead balance is relatively small; prepare the journal entry to cose the Factory Overhead account Factory Overhead What does a debit balance mean? This means factory overhead was overapplied ead balance is relatively small; prepare the journal entry to dlose the Factory Overhead account as (b) The factory overhead Factory Overhead Cost of Goods Sold relatively What does a credit balance mean?Explanation / Answer
Answer:
(1)
factory overhead balance is relatively small, prepare the journal entry to close the Factory Overhead account if the balance in the account is a debit balance.
Account tiltle and Description
Debit $
Credit $
Cost of Goods Sold
30,000
Factory Overhead
30,000
What does a debit balance mean?
It means under applied overhead in the factory overhead account
__________________________________________________
(2)
factory overhead balance is relatively small, prepare the journal entry to close the Factory Overhead account if the balance in the account is a Credit balance.
Account tiltle and Description
Debit $
Credit $
Factory Overhead
30,000
Cost of Goods Sold
30,000
What does a Credit balance mean?
It means over-applied overhead in the factory overhead account.
Account tiltle and Description
Debit $
Credit $
Cost of Goods Sold
30,000
Factory Overhead
30,000
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