Question

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

A. is not listed because it is not a product cost.
B. is not an inventoriable cost.
C. is not listed because it is included with depreciation expense on the income statement.
D. appears in the manufacturing overhead section.

Answer 1

Depreciation on factory equipment is listed under the manufacturing overhead section on the cost of goods manufactured schedule because it is an indirect cost associated with producing goods.

Step-by-step explanation:

In the context of a cost of goods manufactured schedule, depreciation on factory equipment appears in the manufacturing overhead section. This is because depreciation on factory equipment is considered an indirect cost of producing goods. Therefore, it is included as part of manufacturing overhead, which encompasses all indirect costs associated with the production process.

This overhead is essential for businesses to determine the total cost of their products, including both direct and indirect costs. The resulting figure helps businesses in setting prices and managing budgets for production.