Question

In a process cost system, factory depreciation expense incurred is debited to ________.
a)finished goods inventory
b)work in process inventory
c)manufacturing overhead
d)cost of goods sold

Answer 1

Answer:

The correct answer is letter "C": manufacturing overhead.

Explanation:

Manufacturing overhead are untraceable indirect costs that are involved in the process of production given an accounting period. Examples of manufacturing overhead include power and gas service in the manufacturing facility, administrative wages, and depreciation of the equipment used.

Answer 2

Answer:

Manufacturing overhead

Explanation:

Depreciation is a way of allocating a portion of equipment that was consumed to form part of the product cost as the cost of most equipment have life cycle that  extends beyond a business year .

It is treated as overhead as the cost is not directly related to manufacturing of the goods