Wilson Manufacturing Uses a Standard Costing System

question 14

Multiple Choice

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

• A) The actual cost of the units sold plus the total of the unfavorable variances
• B) The standard cost of the units sold
• C) The actual direct materials, direct labor, and standard manufacturing overhead
• D) The actual cost of the units sold

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