What Is the Correct Journal Entry to Record a Favorable

question 39

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)
• \[\begin{array} { | l | c | c | }
• \hline \text { Work in Process Inventory } & \times \times \times & \\
• \hline \text { Direct Materials Mo. Variance } & \times \times\times & \\
• \hline \text { Direct material inventory } & & \times \times \times \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline \text { Work in Process Inventory } & \times \times \times & \\
• \hline \text { Direct Materials Mix Variance } & & \times \times \times \\
• \hline \text { Direct material inventory } & & \times \times\times \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | c | c | }
• \hline \text { Finished Goods Inventory } & \times \times \times & \\
• \hline \text { Direct Materials Mo Variance } & \times \times \times & \\
• \hline \text { Work in Process Inventory } & & \times \times\times \\
• \hline
• \end{array}\]
• D)
• \(\begin{array} { | l | l | l | }
• \hline \begin{array} { l }
• \text { Direct Materials Mix } \\
• \text { Variance }
• \end{array} & X X X & \\
• \hline \begin{array} { c }
• \text { Work in Process } \\
• \text { Inventory }
• \end{array} & & X X X \\
• \hline
• \end{array}\)

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