Where would you expect to find depreciation on factory equipment?
A)included with depreciation expense on the income statement
B)in the manufacturing overhead section of the Costs of Goods Manufactured schedule
C)only on the income statement as part of cost of goods sold
D)as a period cost in the operating expense section of the income statement

Question

Quizplus · Accepted Answer

Depreciation on factory equipment is part of manufacturing overhead cost, which is recorded in the manufacturing overhead section of the Costs of Goods Manufactured schedule. It is not considered a period cost and is not included in the operating expense section of the income statement.

Where Would You Expect to Find Depreciation on Factory Equipment