On December 1, Carmel Valley Production Inc. 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: During December the following transactions occurred: Purchased materials costing $50,000 on account. Placed direct materials costing $49,000 into production. Incurred production wages totaling $50,500. Incurred overhead costs for December: Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses