Memory Bank uses just-in-time production methods. To produce 1,200 units for an order, the company purchased and used materials costing $26,000 and incurred other manufacturing costs of $22,000, of which $8,000 was labor. All costs were on account. After Memory Bank completed production on the 1,200 units and shipped 1,100 units, management recorded the Finished Goods Inventory balance for the 100 units remaining in inventory for financial statement preparation.
Prepare journal entries and T-accounts for these transactions using backflush costing.