Recording manufacturing overhead costs in T-accounts Conwell Corporation manufactures model airplanes. The company purchased for $425,000 automated production equipment that can make the model parts. The equipment has a $25,000 salvage value and a 10-year useful life.

Required

a. Assuming that the equipment was purchased on March 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment.

b. In which month would the depreciation costs be assigned to units produced?