The journal entry to record depreciation on production equipment would include a:
A)debit to Accumulated Depreciation - Equipment
B)credit to Work-in-Process Inventory
C)debit to Manufacturing Overhead
D)credit to Cash

Question

Quizplus · Accepted Answer

Depreciation on production equipment is typically recorded as a debit to Manufacturing Overhead, reflecting the allocation of the equipment's cost as an indirect cost to production over its useful life. Accumulated Depreciation is credited, not debited, to reflect the increase in total depreciation over time. Work-in-Process Inventory and Cash are not directly affected by the depreciation entry.

The Journal Entry to Record Depreciation on Production Equipment Would