At the end of the fiscal year, the balance in Factory Overhead is small. The balance will be

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At the end of the fiscal year, any remaining balance in Factory Overhead, whether it is a debit or credit balance, is typically closed out to Cost of Goods Sold. This is because the overhead costs have already been incurred and need to be matched with the revenue generated in the same period, following the matching principle in accounting.

At the End of the Fiscal Year, the Balance in Factory