The journal entry to record the factory labor costs (as per the time tickets) is as follows:
Debit Work in Process:
Job 100 $2,680
Job 101 2,220
Job 104 4,070
Job 108 4,640
Job 111 2,830
Job 115 1,860
Job 117 12,570
Debit Factory overhead $14,280
Credit Factory Labor costs $45,150
Job No. Amount
100 $2,680
101 2,220
104 4,070
108 4,640
111 2,830
115 1,860
117 12,570
Factory overhead (Indirect labor costs) $14,280
Thus, the factory labor costs are debited to the Work in Process for various jobs and the factory overhead (indirect costs), while the credit entry goes to the Factory Labor Costs account.
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