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)a
B)b
C)c
D)d

Question

Quizplus · Accepted Answer

Option A is incorrect because it only records the direct materials cost and does not take into account the favorable materials mix variance.

Option B is the correct entry as it recognizes the direct materials cost and the favorable materials mix variance.

Option C is incorrect because it recognizes only the direct materials and does not take into account the favorable materials mix variance.

Option D is incorrect because it recognizes only the favorable materials mix variance and does not record the direct materials cost.

What Is the Correct Journal Entry to Record a Favorable