In a manufacturing enterprise depreciation of plant is treated in the
Answer Details
In a manufacturing enterprise, depreciation of plant is treated in the manufacturing account. The manufacturing account is a part of the company's financial statements that shows the cost of goods produced during a particular period.
Depreciation is the process of allocating the cost of a plant or equipment over its useful life. In a manufacturing enterprise, the plant and equipment are used in the production process, and their depreciation is considered as part of the cost of goods produced. Therefore, the cost of depreciation is included in the manufacturing account, which is used to calculate the cost of goods produced.
The manufacturing account includes all the direct costs associated with producing goods, such as raw materials, direct labor, and factory overheads. By including the cost of depreciation in the manufacturing account, the company is able to accurately reflect the true cost of producing the goods.
In summary, depreciation of plant in a manufacturing enterprise is treated in the manufacturing account. This is because depreciation is considered as part of the cost of goods produced, which is reflected in the manufacturing account along with other direct costs associated with producing the goods.