When the actual amount of a raw material used in production is greater than the standard amount allowed for the actual output, the journal entry would include:
A)Credit to Raw Materials; Credit to Materials Quantity Variance
B)Credit to Work-In-Process; Credit to Materials Quantity Variance
C)Credit to Raw Materials; Debit to Materials Quantity Variance
D)Credit to Work-In-Process; Debit to Materials Quantity Variance

Question

Quizplus · Accepted Answer

When more raw material is used than the standard allows, the excess is recorded as a debit to the Materials Quantity Variance account, indicating an unfavorable variance, and a credit to Raw Materials to reduce the inventory.

When the Actual Amount of a Raw Material Used in Production