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 a part of manufacturing overhead costs and is included in the costs of goods manufactured schedule as a part of product cost. It is not shown separately on the Income Statement or reported as a period cost.

Where Would You Expect to Find Depreciation on Factory Equipment