A production cost report provides inventory and cost of goods sold data that are needed for the balance sheet.

Question

Quizplus · Accepted Answer

A production cost report is used to track the costs of producing goods, including direct materials, direct labor, and overhead costs. This report is crucial for determining the cost of goods sold, as well as the value of inventory that remains on hand at the end of a reporting period. Therefore, it provides important data for the balance sheet.

A Production Cost Report Provides Inventory and Cost of Goods