If the indirect labor cost in August for clerical and maintenance that help production in all departments was $123,000,the following journal entry would be recorded in a process costing system:

Indirect Labor Cost

Labor costs not directly associated with the production of goods or the provision of services, such as the wages of maintenance workers or supervisors.

Process Costing System

An accounting methodology used for homogenous products, allocating costs across all units produced.

Journal Entry

A record of a financial transaction in an accounting system, ensuring the debits and credits balance.