If I understand it correctly, when a (manufactured, standard costed) item includes labour, the raw material component costs are moved to WIP and the FG (standard) costs are moved out of WIP, so the difference is the labour/overhead that I need to adjust periodically.

But, I want to periodically perform a standard cost variance analysis - to determine if my standard costs are accurate.  And where they aren't, I need to adjust them. (my RM can fluctuate in cost, so the analysis is important).

If I periodically create a journal entry to clear the WIP credit balance as absorbed labour, then I'm making my standard cost variance equal zero.

Does this mean that I cannot validate my standard costs, except en-mass at the end of a period, when comparing them to factory and labour costs as a whole?

e.g., Labour/OH costs for the month are $10k, and I have a Cr in WIP for $9k, therefore the total of the std costs for the items that I produced on MOs during the month have a $1k shortfall in their Std Costs.

This algebra isn't difficult until you know that we produce varying items with costs that vary from $10 to $1000.

Ugh.