In a job-order costing system, the journal entry to record depreciation on factory equipment would be recorded by a:
A) Debit to Depreciation Expense, credit to Accumulated Depreciation
B) Debit to Manufacturing Overhead, credit to Depreciation Expense
C) Debit to manufacturing Overhead, credit to Work-in-Process
D) Debit to Manufacturing Overhead, credit to Accumulated Depreciation

Question

Quizplus · Accepted Answer

In a job-order costing system, the depreciation on factory equipment is considered an indirect manufacturing cost. Therefore, it is recorded by debiting Manufacturing Overhead and crediting Accumulated Depreciation. This reflects the allocation of factory equipment depreciation to the cost of production.

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