Final answer:
Option D, depreciation on factory machinery, is recorded by debiting the Manufacturing Overhead account in process costing, as it is a fixed cost essential for production but not directly attributable to individual production units.
Step-by-step explanation:
In process costing, the Manufacturing Overhead account is debited to record indirect manufacturing costs that are not directly traceable to specific units of product. Some common items that would be recorded by debiting the Manufacturing Overhead account include the depreciation of factory machinery, factory utilities, and indirect labor costs. Therefore, concerning the options provided, depreciation on factory machinery is the item recorded by debiting the Manufacturing Overhead account, as it represents a fixed cost that is essential for the production process but not directly attributable to any single unit of production.
On the other hand, electricity used in the sales office is not related to manufacturing and would be considered an administrative expense, not a manufacturing overhead. The transfer of units from one process to the next is typically recorded as a credit to the preceding process's inventory account and a debit to the subsequent process's inventory account. Direct labor costs incurred are directly traceable to the production and would therefore be debited to Work in Process, not Manufacturing Overhead