Question

On the costs of goods manufactured schedule, depreciation on factory equipment...

a. is not listed because it is not a product cost.
b. is not listed because it is included with Depreciation Expense on the income statement.
c. appears in the manufacturing overhead section.
d. is not an inventoriable cost.

Answer 1

Answer:

c. appears in the manufacturing overhead section.

Explanation:

Depreciation of factory equipment is charged in the manufacturing overhead. It is not directly traceable and to the product, so it is classified as overhead cost and due to factory equipment used in the manufacturing process, it is classified as manufacturing cost. It is incorporated in the goods manufacturing schedule as Manufacturing overhead.