To which account would an unfavorable materials usage or labor efficiency variance caused by carelessness or inefficiency be closed?

a. Materials Inventory.

b. Income Summary.

uct produced during a particular period are typically in inventory at the same unit cost. 4. This journal entry records the use of materials and establishes a Materials Usage Variance account: debit Accounts Payable and Materials Usage Variance; credit Materials Inventory. 5. Favorable variances are credits in variance accounts.

c. Work in Process.

d. Finished Goods Inventory. pk5