Depreciation of factory buildings and equipment used in manufacturing operations become(s)
A)part of the cost of work-in-process inventories.
B)part of the cost of finished goods inventories.
C)product costs.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

Depreciation of factory buildings and equipment used in manufacturing operations is considered a product cost, which becomes part of the cost of work-in-process inventories, finished goods inventories, and eventually the cost of goods sold when the finished goods are sold. Therefore, all of the given options are correct in this context.

Depreciation of Factory Buildings and Equipment Used in Manufacturing Operations