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

Essay

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