# Question

On December 1, Blue Mountain 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:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$6,000
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
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:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$20,000
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000 (Cash payment)
Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000 (Cash payment)
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 (From inventory)
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.
Blue 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.

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

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