Conoco Company has an actual factory overhead cost of Depreciation Expense-Equip

Question

Conoco Company has an actual factory overhead cost of Depreciation Expense-Equipment of $5000. Job-order costing is used. The Journal entry to record this actual cost would include:
a- Debit Work-in-Process inventory $5000 and Credit to Factory Department Overhead Control $5000
b- Debit to Depreciation Expense-Equipment $5000 and Credit to Accumulated Depreciation-Equipment $5000.
c- Debit to Work-in-Process inventory $5000 and Credit to Factory Department Overhead Applied $5000
d- Debit to Factory Department Overhead Control $5000 and Credit to Accumulated Depreciation-Equipment $5000

Explanation / Answer

The correct option should be d. Debit to Factory department overhead control $ 5,000 and credit to Accumulated depreciation - Equipment $ 5,000, assuming that the euipment is used in the factory and not in the office.

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