What Is the Correct Journal Entry to Record a Favorable

question 65

Multiple Choice

What is the correct journal entry to record a favorable materials mix variance assuming all material variances are recognized when the direct materials are issued to production?

• A) \[\begin{array} { | l | l | l | }
• \hline \text { Work in Process Inventory } & \mathrm { XXX } & \\
• \hline \text { Direct Materials Mix Variance } & \mathrm { XXX } & \\
• \hline \text { Direct Materials Inventory } & & \mathrm { XXX } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | }
• \hline \text { Work in Process Inventory } & \mathrm { XXX } & \\
• \hline \text { Direct Materials Mix Variance } & & \mathrm { XXX } \\
• \hline \text { Direct Materials Inventory } & & \mathrm { XXX } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Finished Goods Inventory } & \mathrm { XXX } & \\
• \hline \text { Direct Materials Mix Variance } & \mathrm { XXX } & \\
• \hline \text { Work in Process Inventory } & & \mathrm { XXX } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Finished Goods Inventory } & \mathrm { XXX } & \\
• \hline \text { Direct Materials Mix Variance } & & \mathrm { XXX } \\
• \hline \text { Work in Process Inventory } & & \mathrm { XXX } \\
• \hline
• \end{array}\]

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Definitions:

Many

A term referring to a large number of something, indicating abundance or numerousness.

Much

A large amount or degree of something.

Excessive

Describes an amount or degree of something that is more than necessary, reasonable, or permissible.

Lack

The absence or deficiency of something desirable or necessary.