Country Furniture Company manufactures furniture at its Akron, Ohio, factory. from the past year include: Depreciation on sales office on equipment $9300 16,100
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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subject-Accounting
![Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs
from the past year include:
Depreciation on sales office
Depreciation on factory equipment
Factory supervisor salary
Sales commissions
Lubricants used in factory equipment
Insurance costs for factory
Wages paid to maintenance workers
Fabric used to upholster furniture
Freight-in (on raw materials)
Costs of delivery to customers
Wages paid to assembly-line workers
Lumber used to build product
Utilities in factory
Utilities in sales office
Manufacturing overhead costs for Country Furniture Company totaled
$237,300.
$325,200.
$9300
16,100
50,600
23,700
3300
$262,400.
O $131,900.
21,800
115,800
10,500
3300
9000
115,200
82,400
54,800
26,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2Fcac36ac1-6cbb-4e7b-9e39-e20022558d76%2F11ngcno_processed.jpeg&w=3840&q=75)
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