Wilson Manufacturing uses a standard costing system. When Wilson sells its inventory units, by how much is the Finished Goods Inventory account reduced?

Question

Quizplus · Accepted Answer

Wilson Manufacturing uses a standard costing system, which means that the cost of goods sold is based on the standard cost of the units sold rather than the actual cost. Therefore, when Wilson sells its inventory units, the Finished Goods Inventory account is reduced by the standard cost of the units sold.

Wilson Manufacturing Uses a Standard Costing System