When using a standard costing system,at the end of the accounting period,the balances in all inventory and cost of goods sold accounts will be at standard amounts.

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In a standard costing system, the inventory and cost of goods sold accounts are recorded at standard amounts based on the predetermined standard costs for materials, labor, and overhead. Therefore, at the end of the accounting period, the balances in these accounts will ideally match the standard amounts. However, there may be variances between the actual costs and the standard costs, which will be analyzed separately.

When Using a Standard Costing System,at the End of the Accounting