Direct labor (actors and directors) $ 82, 080 Indirect labor (carpenters to build sets, costume designers, and so forth) $ 110,080 Administrative salaries $ 95,080 g. Prepaid Insurance expired during the year, $7,000 (80% related to production of videos, and 20% related to marketing and administrative activities). h. Miscellaneous marketing and administrative expenses Incurred, $8,600. 1. Studio (manufacturing) overhead was applied to videos In production. The company used 7,250 camera-hours during the year. J. Videos that cost $550,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to awalt sale and shipment. k. Sales for the year totaled $925,000 and were all on account. The total cost to produce these videos according to their Job cost sheets was $600,000. I. Collections from customers during the year totaled $850,000. m. Payments to suppliers on account during the year, $500,000; payments to employees for salaries and wages, $285,000. Required: 1. Prepare a T-account for each account on the company's balance sheet and enter the beginning balances. 2. Record the transactions directly Into the T-accounts. 3. Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year? By how much? 4. Prepare a schedule of cost of goods manufactured. 5. Prepare a schedule of cost of goods sold. 6. Prepare an Income statement for the year. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Prepare a T-account for each account on the company's balance sheet and enter the beginning balances. Record the transactions directly into the T-accounts. Cash Accounts Receivable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Raw Materials Prepaid Insurance Debit Credit Debit Credit Beginning Balance Beginning BalanceCash Accounts Receivable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Raw Materials Prepaid Insurance Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Videos in Process Finished Goods Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Studio and Equipment Accumulated Depreciation Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Studio Overhead Depreciation Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending BalanceDebit Credit Debit Credit Beginning Balance Beginning Balance Miscellaneous Expense Administrative Salaries Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Cost of Goods Sold Sales Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Salaries & Wages Payable Accounts Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Retained Earnings Capital Stock Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending BalanceSupreme Videos, Incorporated, produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1, are given below. Supreme Videos, Incorporated Balance Sheet January 1 Assets current assets: cash $ 63, 80 Accounts receivable 102, 800 Inventories : Raw materials (film, costumes) $ 30, 000 Videos in process 45, 090 Finished videos awaiting sale 81, 060 156, 800 Prepaid insurance 9, 000 Total current assets 330, 080 Studio and equipment 730, 000 Less accumulated depreciation 210, 060 520, 000 Total assets $ 850,060 Liabilities and Stockholders' Equity Accounts payable $ 160, 800 capital stock $420,090 Retained earnings 270, 909 690, 800 Total liabilities and stockholders" equity $ 856,060 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 is based on a cost formula that estimated $280,000 In manufacturing overhead for an estimated allocation base of 7,000 camera-hours. The following transactions occurred during the year: a. Film, costumes, and similar raw materials purchased on account, $185,000. 6. Film, costumes, and other raw materials used in production, $200,000 (85%% of this material was considered direct to the videos In production, and the other 15% was considered Indirect). c. Utility costs Incurred in the production studio, $72,000 d. Depreciation recorded on the studio, cameras, and other equipment, $84,000. Three-fourths of this depreciation related to production of the videos, and the remainder related to equipment used in marketing and administration. e. Advertising expense incurred on account, $130,000. f. Costs for salaries and wages were Incurred as follows: Direct labor (actors and directors) $ 82,080 Indirect labor (carpenters to build sets, costume designers, and so forth) $ 110, 080 Administrative salaries $ 95,080 g- Prepaid Insurance expired during the year, $7,000 (80% related to production of videos, and 20% related to marketing and administrative activities) h. Miscellaneous marketing and administrative expenses Incurred, $8,600. . Studio (manufacturing) overhead was applied to videos in production. The company used 7,250 camera-hours during the year