Asked by elizabeth mccloskey on Jul 30, 2024

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The amount journalized showing the cost added to finished goods is taken from the cost of production report.

Cost Of Production Report

A document that summarizes the production and cost activity within a manufacturing department over a specific period.

Finished Goods

Products that have completed the manufacturing process and are ready for sale.

  • Understand the framework and intent behind a cost of production report.
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Kevika BegayAug 05, 2024
Final Answer :
True
Explanation :
The cost of production report shows the cost of goods manufactured, which includes the direct materials, direct labor, and factory overhead costs incurred during the manufacturing process. The cost added to finished goods is the total cost of goods manufactured plus the beginning work in process inventory, minus the ending work in process inventory. This amount is then journalized to show the cost added to finished goods.