Because the videos differ in length and in complexity of production, the company uses a job$-$order costing system to determine the cost of each video produced. Studio $($manufacturing$)$ overhead is charged to videos on the basis of camera$-$hours of activity. The company's predetermined overhead rate for the year $($ $$40$ per camera$-$hour$)$ is based on a cost formula that estimated $$280,000$ in manufacturing overhead for an estimated allocation base of $7,000$ camera$-$hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year

a$.$ Film, costumes, and similar raw materials purchased on account, $$216,500.$

b$.$ Film, costumes, and other raw materlals issued to production, $$225,500(85\%$ of this materlal was considered direct to the videos in production, and the other $15\%$ was considered indirect$).$

C$.$ Utility costs Incurred $($on account$)$ In the production studlo, $$87,000.$

d$.$ Depreclation recorded on the studio, cameras, and other equipment, $$109,200.$ Three$-$fourths of this depreclation related to actual production of the videos, and the remainder related to equipment used in marketing and administration.

e$.$ Advertising expense incurred $($on account$),$ $$135,000$

f$.$ Salarles and wages paid in cash as follows:

Direct labor $($actors and directors$)$

Indirect labor $($carpenters to build sets, costume designers, and so forth$)$

Administrative salaries

$$95,400$

$$70,600$

$$97,200$

g$.$ Prepald insurance explred during the year, $$8,100(70\%$ related to production of videos, and $30\%$ related to marketing and administratlve actlvitles$).$

h$.$ Miscellaneous marketing and administrative expenses Incurred $($on account$),$ $$13,350$

I. Studio $($manufacturing$)$ overhead was applied to videos in productlon. The company recorded $7,250$ camera$-$hours of activity during the year.

J$.$ Videos that cost $$586,000$ to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment.

k$.$ Sales for the year totaled $$986,000$ and were all on account.

The total cost to produce the videos that were sold according to thelr job cost sheets was $$632,470$

$m.$ Collections from customers during the vear totaled $$936,000.$