Journal entries for a manufacturer On December 1, Stone Mountain 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 1 costs follow:

d. Incurred overhead costs for December:

e. Applied overhead to work in process at a predetermined rate of \(125 \%\) of direct labor cost.

f. Completed and transferred 10,000 units to Finished Goods. (Hint: You should first compute equivalent units and unit costs.)
Stone Mountain 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.
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Prepare the journal entries to record the above information for the month of December.

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