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Question
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; journalize the 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; journalize the entry to close the factory overhead account assuming a credit balance. What does a credit balance mean?
Answer
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