When the actual amount of a material used in production is greater than the standard amount allowed for the actual output, the journal entry would include:
A) debit to Materials Inventory; credit to Materials Efficiency Variance.
B) debit to Work-In-Process Inventory; credit to Materials Efficiency Variance.
C) debit to Materials Inventory; debit to Materials Efficiency Variance.
D) debit to Work-In-Process Inventory; debit to Materials Efficiency Variance.

Question

Quizplus · Accepted Answer

When more material is used than the standard allows, it results in an unfavorable efficiency variance, which is recorded as a debit to the Materials Efficiency Variance account. The Work-In-Process Inventory is also debited for the actual materials used.

When the Actual Amount of a Material Used in Production