I am setting up an accounting system for the Coffee grinding and selling business. My issue is how to record finished good inventory and cost using standard costing.

Hello there. Welcome to the Community.

You can create a Bundle item so you can record finished goods inventory and cost in QuickBooks Online (QBO). I'll gladly show you how to do this.

Finished goods inventory is any stock carried by a manufacturer ready for immediate sale. In QBO, standard costs refer to the usual expense incurred in production. You can record this by creating a bundle item to group multiple products or services. Here's how:

1. Go to Get paid & pay, and select Products and services.
2. Select New.
3. Choose Bundle on the Product/Service information page.
4. Enter all the necessary details of the item, like Name and Products/services included in the bundle.
5. Click Save and close. 

You can refer to this article to learn more about tracking and managing product and service items in QBO: Add product and service items to QuickBooks Online.

Also, you may want to check out this article as your reference to guide you on how you can get helpful insights on the things you buy and sell and the status of your inventory in QBO: Use reports to see your sales and inventory status.

Let me know if you have other concerns about managing your products and service items, and inventories in QBO. I'm always ready to help. Take care, and have a great day.