In a system designed to measure cost variances,goods transferred from the Work in Process account to the Finished Goods Inventory are valued at:
A)Actual cost.
B)Market value.
C)Standard cost.
D)The lower of actual cost or market value.

Question

Quizplus · Accepted Answer

When transferring goods from the Work in Process account to the Finished Goods Inventory, standard cost should be used to value the items. This allows for a more accurate tracking of cost variances and ensures consistency in valuing inventory. Actual cost may not be available at this point, and market value would not accurately reflect the cost of producing the items. The lower of actual cost or market value would also not be applicable in this situation.

In a System Designed to Measure Cost Variances,goods Transferred from the Work