Depreciation of production equipment is included in the manufacturing expense account.
Manufacturing cost allocation usually adopts the method of proportion of production workers' working hours (or the method of proportion of production working hours), the method of proportion of production workers' wages (or the method of proportion of production wages), the method of proportion of machines' working hours, and the method of allocation according to the allocation rate of the annual plan, and so on.
Accumulated depreciation is the amount that should be amortized over the period of time that a fixed asset is in use and over the period of time that the asset is benefited. Accumulated depreciation account belongs to the asset class of allowance adjustment accounts, which is just opposite to the structure of general asset accounts. Accumulated depreciation is credited to register increases and debited to register decreases, with the balance on the credit side indicating the total amount of accumulated depreciation.
Benefits of depreciation of production equipment
Accelerated depreciation of fixed assets is a concept of depreciation relative to the traditional fixed assets, the average depreciation over the life of the fixed assets. In order to accelerate its capital investment recovery trend, a way of allocating its cost in a declining state, the total depreciation of fixed assets in use and the number of years remain unchanged.
In the use of more depreciation in the early part of the depreciation amount, less depreciation in the later part of the depreciation amount, so that most of the wear and tear of the fixed assets used can be recovered in the earlier part of the use of a few periods of time, to ensure that the value of the assets consumed by the value of the early compensation of a method. Enterprise fixed assets due to technological progress and other reasons, really need to accelerate depreciation, you can shorten the depreciation period or take the accelerated depreciation method.