If Department L uses $53,000 of direct labor and Department M uses $21,000 of direct labor, the following journal entry would be recorded using a process costing system:
$\begin{array}{l}
\text { Work in Process Inventory, Department L } & 53,000 \
\text { Work in Process Inventory, Department M } & 21,000 \
\text { Factory Wages Payable } &&74,000
\end{array}$

Question

Quizplus · Accepted Answer

This journal entry is correct for a process costing system as it records the direct labor costs for each department into the appropriate work in process inventory account and also records the total amount of factory payroll payable.

If Department L Uses $53,000 of Direct Labor and Department