The production cost report for Department 2 shows that $452,000 was assigned to the 53,000 units transferred to Finished Goods Inventory.Cost of goods manufactured equals $452,000.

Question

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The production cost report assigns the cost of goods produced to the units transferred to finished goods inventory. Therefore, the cost of goods manufactured is equal to the cost assigned to the units transferred, which in this case is $452,000.

The Production Cost Report for Department 2 Shows That $452,000