Refer to Roofus Company. What is the journal entry to record the issuance and usage of materials?
A) Work in Process 18,900
Materials Usage Variance 675
Materials 19,575
B) Work in Process 19,575
Materials Usage Variance 675
Materials 18,900
C) Work in Process 24,500
Materials Usage Variance 875
Materials 25,375
D) Work in Process 25,375
Materials Usage Variance 875
Materials 24,500

Question

Quizplus · Accepted Answer

The journal entry to record the issuance and usage of materials is to debit Work in Process for the cost of the materials used, credit Materials for the cost of the materials issued, and debit Materials Usage Variance for any difference between the actual cost and the standard cost of the materials used. Option B correctly records the issuance and usage of materials by debiting Work in Process for the cost of the materials used ($19,575), crediting Materials for the cost of the materials issued ($18,900), and debiting Materials Usage Variance for the difference between the actual cost and the standard cost of the materials used ($675).