The depreciation expense of equipment is charged to the following accounts:
1. Fixed assets used in the basic production workshop of an enterprise.
Manufacturing costs refer to the various indirect costs incurred by the enterprise for the production of products and the provision of labor services, including utility costs incurred by the production departments of the enterprise (such as the production workshop), depreciation of fixed assets, amortization of intangible assets, employee remuneration for management personnel, labor protection costs, relevant environmental protection costs stipulated by the state, and downtime losses during the seasonal and repair periods, and so on.
2. Depreciation is charged to manufacturing expenses.
Enterprises should set up a "manufacturing overhead" account for general accounting. The account should be set up according to the different production units to set up detailed accounts, accounts in accordance with the cost of setting up a special column or account, respectively, to reflect the production unit of the manufacturing costs incurred.
3. Depreciation of fixed assets used in the process of self-construction of fixed assets is included in the cost of construction in progress.
Auxiliary production plant if only a single species of production or only provide a kind of labor and the amount of manufacturing costs is small, in order to reduce the transfer procedures, the manufacturing costs incurred, can not be accounted for through the manufacturing cost account, directly into the auxiliary production cost account. Manufacturing overhead account belongs to the cost account, debit registering the collection of manufacturing costs incurred, credit reflect the allocation of manufacturing costs.
Calculation of depreciation expense:
I. Calculation method discussed.
Calculation of depreciation is a variety of methods, the use of different methods, there may be calculated for an accounting period of depreciation is not equal, thus affecting the cost of products during the accounting period, but also affects the net book value of fixed assets, so it must be based on the specific circumstances of the application of depreciation method of careful choice.
Two, the useful life method.
The projected useful life of fixed assets according to the average apportionment of the value of a method. This method if the time as the horizontal coordinates, the amount of vertical coordinates, accumulated depreciation in the graph of a rising straight line, so it is called "straight line method".
Three, workload method.
Depreciation expense, is a method of depreciation of fixed assets according to the total workload specified. This method is applied to certain value is very large, but infrequent use or production changes, wear and tear and uneven production of specialized equipment and transportation equipment and other depreciation calculation. According to the use and characteristics of the equipment can be based on working hours, work shift or mileage and other different methods of calculating depreciation.