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How to add citation for a whole paragraph?

If I write a report and a whole paragraph is based on one source but not cited verbally it seems unnecessary to include the reference after every sentence:

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua (source 1). Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat (source 1).

Now I found a Phd thesis that puts the reference after the last dot of the paragraph to indicate that it is based on this very source:

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. (source 1)

Is this a common practice? Is it generally understood? What are other ways to add the reference for a whole paragraph?

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