JIT Inventory Accounting: Houston Biotech, Inc., manufactures surgical tools. An order was received for 500 autoclaves. Materials costing $12,500 were ordered on account. Additional manufacturing costs were $46,000, of which $25,000 was an account payable and the balance was wages payable. At the end of the accounting period, $3,700 of goods were not yet completed and were in the company's sole processing area.

Required: Prepare the journal entries to show the flow of costs under a JIT system.