Asked by elizabeth mccloskey on Jul 30, 2024
Verified
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.
Verified Answer
KB
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.
Learning Objectives
- Understand the framework and intent behind a cost of production report.
Related questions
The Cost of Production Report Summarizes (1) the Units for ...
The First Step in Preparing a Cost of Production Report ...
Summary of the Activity in a Processing Department for a ...
The Total Costs Accounted for in a Production Cost Report ...
The Production Cost Report Summarizes the Activities That Have Taken ...