What Is the Correct Journal Entry to Record a Favorable

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) $$\begin{array} { | l | l | l | } \hline \text { Work in Process Inventory } & \mathrm { XXX } & \\\hline \text { Direct Materials Mix Variance } & \mathrm { XXX } & \\\hline \text { Direct Materials Inventory } & & \mathrm { XXX } \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | } \hline \text { Work in Process Inventory } & \mathrm { XXX } & \\\hline \text { Direct Materials Mix Variance } & & \mathrm { XXX } \\\hline \text { Direct Materials Inventory } & & \mathrm { XXX } \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | } \hline \text { Finished Goods Inventory } & \mathrm { XXX } & \\\hline \text { Direct Materials Mix Variance } & \mathrm { XXX } & \\\hline \text { Work in Process Inventory } & & \mathrm { XXX } \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \text { Finished Goods Inventory } & \mathrm { XXX } & \\\hline \text { Direct Materials Mix Variance } & & \mathrm { XXX } \\\hline \text { Work in Process Inventory } & & \mathrm { XXX } \\\hline\end{array}$$