If the factory labor cost for a month was $123,000 (paid in cash), the following journal entry would be recorded by the process cost accounting system:

Question

Quizplus · Accepted Answer

In process cost accounting, when factory labor is paid in cash, the following journal entry is recorded:

Debit Work in Process Inventory for the labor cost
Credit Cash for the amount paid.

Therefore, the given statement is true.

If the Factory Labor Cost for a Month Was $123,000