Question
Assume that SQ = Standard Quantity, SP = Standard Price, AQ = Actual Quantity, and AP = Actual Price. The correct entry along with the
Assume that SQ = Standard Quantity, SP = Standard Price, AQ = Actual Quantity, and AP = Actual Price. The correct entry along with the equation to record the issuance and usage of materials, assuming a favorable materials usage variance, is as follows
| a. | debit Work in Process, SQ SP credit Materials Usage Variance, (AQ SQ) SP credit Materials, AQ SP | |
| b. | debit Work in Process, SQ SP debit Materials Usage Variance, (AQ SQ) SP credit Materials, AQ SP | |
| c. | debit Work in Process, AQ AP credit Materials Usage Variance, (AQ SQ) SP credit Materials, AQ SP | |
| d. | debit Work in Process, AQ AP debit Materials Usage Variance, (AQ SQ) SP credit Materials, AQ SP | |
| e. | None of these. |
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