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

The journal entry for recording factory labor cost paid in cash would typically be a debit to the Factory Labor account and a credit to the Cash account. The journal entry would look something like this:

Debit: Factory Labor $123,000
Credit: Cash $123,000

This entry would increase the Factory Labor expense account and decrease the Cash account by the same amount.

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