Question

The amount of depreciation for the period of factory related items that pertains to the products that were produced during the current period bu that remain unsold at the end of the period is reflected as __. The amount of depreciation for the period that pertains to the goods that were partially processed during the current period and that remains in process at the end of the period is reflected as __

Answer 1

Depreciation of factory items for unsold products is reflected as 'ending inventory' while depreciation for goods in process is reflected as 'work in progress' (WIP), both on the balance sheet.

Step-by-step explanation:

The amount of depreciation for the period of factory related items that pertains to the products that were produced during the current period but that remain unsold at the end of the period is reflected as ending inventory in the balance sheet.

The depreciation related to these items is not expensed on the income statement but rather included in the carrying value of the inventory. In contrast, the amount of depreciation for the period that pertains to the goods that were partially processed during the current period and that remains in process at the end of the period is reflected as work in progress (WIP), which is a type of inventory on the balance sheet. This depreciation is also added to the cost of the WIP and not expensed on the income statement until the goods are finished and sold.

The amount of depreciation for the period of factory related items that pertains to the products that were produced during the current period but remain unsold at the end of the period is reflected as inventory depreciation. This reflects the decrease in value of the unsold goods over time.

The amount of depreciation for the period that pertains to the goods that were partially processed during the current period and that remain in process at the end of the period is reflected as work-in-progress depreciation. This reflects the decrease in value of the goods that are still being manufactured.

Answer 2

The depreciation for unsold products at the end of the period is reflected as inventories, while depreciation for goods in the process of being made is reflected as work in process. Both are noted on the Balance Sheet with accumulated depreciation reflecting the value reduction over time.

Step-by-step explanation:

The amount of depreciation for the period of factory-related items that pertains to the products produced during the current period but remain unsold at the end of the period is reflected as inventories. These are goods produced by a business that have not yet been sold to consumers and are still in warehouses or on shelves.

The amount of depreciation for the period that pertains to goods that were partially processed during the current period and remain in process at the end of the period is reflected as work in process, which is a component of inventory in the Balance Sheet. This represents the production costs for incomplete items that will eventually be sold as part of the business's operations.

Depreciation represents the process by which capital ages over time and therefore loses its value. In accounting, accumulated depreciation is reported on the business's Balance Sheet and reduces the original cost of the asset to reflect its current value.