In the Excel,or spreadsheet,approach to recording financial transactions,direct labor paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in Process column.

Question

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Direct labor paid in cash represents an increase in the Work in Process column, as it pertains to the cost of goods sold, and a decrease in the Cash column, as cash is being reduced due to the payment of direct labor costs.

In the Excel,or Spreadsheet,approach to Recording Financial Transactions,direct Labor Paid