In a job-order costing system, the entry to record depreciation on manufacturing equipment would include:
A) a debit to the Work in Process inventory account.
B) a debit to the Depreciation Expense account.
C) a debit to the Manufacturing Overhead account.
D) a credit to the Work in Process inventory account.

Question

Quizplus · Accepted Answer

In a job-order costing system, depreciation on manufacturing equipment is considered part of manufacturing overhead. Therefore, the entry would include a debit to the Manufacturing Overhead account to allocate the cost of depreciation to production.

In a Job-Order Costing System, the Entry to Record Depreciation