Concept:In a manufacturing enterprise, depreciation of plant used in production is a factory overhead, so it is charged to the manufacturing account.
Explanation:The plant is used directly in the production process.
Depreciation on such production plant is a production overhead.
Production overheads form part of the total cost of production.
The manufacturing account is prepared to compute the cost of production.
Therefore, depreciation of plant is included in the manufacturing account.
It is not transferred to the trading account or the profit and loss account.
Only depreciation on administrative plant would appear in the profit and loss account.
The appropriation account is used for sharing profits and is not involved in this case.
Answer:C. manufacturing account