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Please answer all the parts with all the T accounts Supreme Videos, Incorporated, produces short musical videos for sole to retail outlets. The compony's belance
Please answer all the parts with all the T accounts
Supreme Videos, Incorporated, produces short musical videos for sole to retail outlets. The compony's belance sheet occounts as of January 1 , are given below. 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) overhesd is chargod 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 $240.000 in manufacturing overhead for an estimated allocation base of 6.000 camera-hours. The following transactions occurred during the year: a. Film, costumes, and similar raw materiais purchased on account, $205,000 b. Film, costumes, and other raw materials used in production, $220.000 f 80% of this material was considered direct to the videos in production, and the other 20% was considered indirect. c. Utility costs incurred in the production studio, $92,000. d. Depreciation recorded on the studio, cameras, and other equipment, $104,000. Three-fourths of this depreciation related to production of the videos, and the remainder related to equipment used in marketing and administration. c. Advertising expense incurred on account, $150.000. t. Costs for salaries and wages were incurred as follows: 9. Prepald insurance expired during the year, $9,000 (55\% related to production of videos, and 25% related to marketing and administrative activities). h. Miscellaneous marketing and administrative expenses incurred, $10.600. I. Studio (manufacturing) overhead was applied to videos in production. The company used 9.000 camera-hours during the year. 1. Videos that cost $570.000 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 $965.000 and were all on account. The totol cost to produce these videos according to their job cost sheets was $620,000 1. Collections from customers during the year totaled $870,000. m. Payments to suppliers on account during the year, $520,000; payments to employees for salaries and wages, $327,000. 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. Key your entries to the letters (a) through (m) above. 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. Aeq I and 2= Req.3_ Requ 4 Req 5 Req 6 Prepare at T-account for each account on the compamy's batance sheet and enter the beginaing balances, Record the transactians directly inte the T-accoints Step by Step Solution
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