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

Question

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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.

The Amount Journalized Showing the Cost Added to Finished Goods