174. List the accounts used in the cost flow for (a) a manufacturer and (b) a service provider. (a)Materials Wages Payable Factory Overhead Work in Process Finished Goods Cost of Goods...

174. List the accounts used in the cost flow for (a) a manufacturer and (b) a service provider.

(a)Materials

Wages Payable

Factory Overhead

Work in Process

Finished Goods

Cost of Goods Sold

(b)Supplies

Wages Payable

Overhead

Work in Process

Cost of Services

175. At the end of the period, Carson Company had the following balances in selected accounts:



Raw Materials Inventory $ 90,000

Finished Goods 180,000

Work in Process Inventory 70,000

Cost of Goods Sold 1,000,000

Factory Overhead 20,000


Required:


a. Assuming the amount is immaterial, prepare the journal entry to close the Manufacturing Overhead account if the balance in the account is a debit balance. What does a debit balance mean?


b. Assuming the amount is immaterial, prepare the journal entry to close the Manufacturing Overhead account if the balance in the account is a credit balance. What does a credit balance mean?

a. Cost of Goods Sold 20,000

Factory Overhead 20,000



This means underapplied overhead in the factory overhead account.


b. Factory Overhead 20,000

Cost of Goods Sold 20,000



This means overapplied overhead in the factory overhead account.