Final answer:
Payment of the factory rent increases the Manufacturing Overhead Control account in accounting, as it is a fixed cost not directly associated with the production of any single unit or batch of products.
Step-by-step explanation:
The payment of factory rent affects the financial accounts associated with the costs of production. Specifically, when rent for a factory space is paid, this cost is categorized as a fixed cost, not directly tied to the volume of production. In the context of accounting for manufacturing costs, the rent payment would increase the Manufacturing Overhead Control account. It is not a direct cost related to the production of any single unit or batch of products; hence, it does not affect the Work-in-Process Control account.
According to traditional accounting principles, the costs associated with the operation of factory facilities, such as rent, utilities, equipment depreciation, and others that are not directly tied to the creation of a product, are allocated to manufacturing overhead. These costs are then later applied to the cost of goods manufactured based on a predetermined overhead rate. This process ensures that each product absorbs a fair share of the indirect manufacturing costs.