MCQ Solution | The Entry To Record Depreciation On The Factory Building Should Include A

The correct answer is (b), as all the costs related to factory except direct material and direct labor are debited to Manufacturing Overhead. In other words, the factory building is used for manufacturing / production purpose, so we charge the depreciation on factory building under manufactured overhead. The account to be credited is accumulated depreciation on factory building account (which is a contra asset account).

So, the cost of depreciation on the factory building incurred during manufacturing facilities is debited to Manufacturing Overhead.

The other options (a, c, d and e) of this multiple choice question (mcq) are incorrect choices here.