Manufacturing

Factory Rent vs. Admin Office Rent

Splitting rent between production and administrative use.

Account NameTypeDebit ($)Credit ($)
Manufacturing Overhead (Control)Expense (+)8,000.00-
Rent Expense (Administrative)Expense (+)2,000.00-
Cash / BankAsset (-)-10,000.00

💡 Accountant's Note

Rent for the production floor is a product cost (Overhead), while rent for the sales office is a period cost (Expense).

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