The production cost report for Department 2 shows that $454,000 was assigned to the 50,000 units transferred to Finished Goods Inventory.Cost of goods manufactured equals $454,000.Process costing is used.

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The fact that $454,000 was assigned to units transferred to Finished Goods Inventory indicates that the cost of goods manufactured was indeed $454,000. Furthermore, the mention of process costing suggests that this is a production cost report for a manufacturing process that involves producing large quantities of identical products, which would be typical of process costing.

The Production Cost Report for Department 2 Shows That $454,000