The journal entry to record the use of direct materials for Aztec Bromac is:
A) $\begin{array}{ll}
\text { Dr Work in Process Inventory }&\$30,240\
\text { Cr DM Efficiency Variance } & \$ 3,240 \
\text { Cr Direct Materials Inventory } & \$ 27,000
\end{array}$
B) $\begin{array}{ll}
\text { Dr Work in Process Inventory } & \$ 30,240 \
\text { Dr DM Efficiency Variance } & \$ 3,240\
\text { Cr Direct Materials Inventory }&\$33,480
\end{array}$
C)$\begin{array}{ll}
\text {Dr Direct Materials Inventory }&\$30,240\
\text {Cr DM Efficiency Variance }&\$3,240\
\text {$ \mathrm{Cr} $ Work in Process Inventory}&\$27,000\
\end{array}$

D) $\begin{array}{ll}
\text { Dr Work in Process Inventory }&\$30,000\
\text { Cr DM Efficiency Variance } & \$ 3,240 \
\text { Cr Direct Materials Inventory } & \$ 26,760
\end{array}$

Question

The journal entry to record the use of direct materials for Aztec Bromac is:
A) $\begin{array}{ll}
\text { Dr Work in Process Inventory }&\$30,240\
\text { Cr DM Efficiency Variance } & \$ 3,240 \
\text { Cr Direct Materials Inventory } & \$ 27,000
\end{array}$
B) $\begin{array}{ll}
\text { Dr Work in Process Inventory } & \$ 30,240 \
\text { Dr DM Efficiency Variance } & \$ 3,240\
\text { Cr Direct Materials Inventory }&\$33,480
\end{array}$
C)$\begin{array}{ll}
\text {Dr Direct Materials Inventory  }&\$30,240\
\text {Cr DM Efficiency Variance }&\$3,240\
\text {$ \mathrm{Cr} $ Work in Process Inventory}&\$27,000\
\end{array}$

D) $\begin{array}{ll}
\text { Dr Work in Process Inventory }&\$30,000\
\text { Cr DM Efficiency Variance } & \$ 3,240 \
\text { Cr Direct Materials Inventory } & \$ 26,760
\end{array}$

Quizplus · Accepted Answer

The correct journal entry to record the use of direct materials involves debiting Work in Process Inventory for the total cost of materials used and crediting Direct Materials Inventory for the actual cost of materials. If there's a variance, it's also recorded. Option A correctly reflects this process, showing the use of materials, the variance, and the actual cost of materials used.

The Journal Entry to Record the Use of Direct Materials