please solve 3-17
PRooleM 3-17 Cost Flows; T-Accounts; income Statement LO3-2, LO3-3, 1034, Supertie Videos, Inc, produces short musical videos for sale to recal ootles. The company's balance Besause the videos differ in length and in cocaplexity of prodection, the conpusy ines a jeb-onker contiag syvera to determine the cost of each video prodoced. Studio (manufsctarind overted is charged bo videos oa the basis of camera-hours of activity. The company's prodetermined overheal nate for the year is butied on a cost formula that estimated $280,000 in magufacturing overitead for as citinuted allocation beke of 7,000 camera-hoars. The following trancactions occurred dirisg the jear: 3. Film, costumes, and similar raw materials purchased on account, 5185,000 b. Hilm, costumes, and ocher ras materials used in production 5200000 (sst of thes material aas considered direct to the videos in production, and the other 155 mas crenidered indireeth. 5. Ueility costs incurred in the production studio. $72,000. (5) Depreciation reconded on the sudio, cameras, and obher equipmeat sst,oon. Thesefourth of this deprociation related to prodoction of the videok, and the remainder relsed to oquipaerit used ia Tarketing and administration. . Advertising expense incurred, $130,000. C. Costs for salaries and wages were incurned as follow: Acrininistrative salaries. j. Videos that cost $550.000 to produce according to their job cost sheets were transferred to the finished videos warehouve to await sale and shipment. k. Sales for the year fotaled $925,000 and were all on uccount. The total cost to produce these videos according to their job cout sheets wax $600,000. 1. Collections from customers dering the year totaled $850,000. m. Payments to suppliers on accocnt during the year, $500.000. payments to employees for salaries and wages, $285,000. Required: 1. Prepure a Taccount for each account on the compuny's balance sheet and enter the beginning balances. 2. Record the transactions directly into the Traccounts. Prepare new T-accounts as needed. Key your entries to the letters (a) throogh ( m ) above. Comptite the ending balance in each account. 3. Is the Studio (manufacturing) Overhead account underepplied or overepplied for the year? Make an entry in the T-accounts to close any balance in the Studio Overhead account to Cost of Goods Sold. 4. Prepare a scbedule of cost of goods manufactured. If done correctly, the cost of goods manufactured from your schedule should agree with which of the above transictions? 5. Prepare a schedule of cost of goods sold. If done correctly, the unadjusted cost of goods sold from your schedule should agree with which of the above transactions? 6. Prepare an income statement for the year
