Journal entries for a manufacturer LO₁On December l,Yayno Production Company had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December I costs follow:

During December the following transactions occurred:

a. Purchased materials costing $50,000 on account.

b. Placed direct materials costing $49,000 into production.

c. Incurred production wages totaling $50,500.

d. Incurred overhead costs for December:

e. Applied overhead to work in process at a predetermined rate of 200% of direct labor cost.

f. Completed and transferred 10,000 units to Finished Goods. (Hint: You should first compute equivalent units and unit costs.)
Yayno Company uses an average cost system. The ending inventory of work in process consisted of 1 ,000 units that were completed as to materials and 25%
complete as to labor and overhead.

Required:
Prepare the journal entries to record the above information for the month of December.I

Transcribed Image Text:

Materials.. Labor Overhead $6,000 2,000 2,000