California Hi-Tech Inc. uses a just-in-time production system. The factory has received an order for 1,000 units of Model RS to be filled this month. For this order they purchased and used materials costing \(\$ 20,000\) and incurred other manufacturing costs of \(\$ 46,000\) (including \(\$ 10,000\) in labor costs). During the month, 800 units were completed and shipped. Ending inventories include 100 finished units and 100 units in-process, 20 percent complete as to conversion. Conversion costs were incurred evenly throughout the conversion process.

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Prepare the necessary journal entries for recording the production activities concerning this order.