Problem 3-17 (Algo) Cost Flows; T-Accounts; Income Statement [LO3-2, LO3-3, LO3-4) Supreme Videos, Incorporated, produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1, are given below. $ 76,000 115,000 Supreme Videos, Incorporated Balance Sheet January 1 Assets Current sets Cash Accounts receivable Inventaries materials (film, costumes) Videas in process Viniched videos waiting sale Prepaid insurance Yotal current sets Son and woment Les accumulated depreciation Total assets bities and Stockholders' Equity Accounts payable capital stock Retained warnings Total liabilities and stockholders' equity $ 45,000 21,000 94,000 158,000 11. GO 160,000 756,000 223,000 53,000 $ 193,00 $ 108,640 $ 503,000 2000 785,000 5893,600 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 $200,000 in manufacturing overhead for an estimated allocation base of 4,000 camera hours. The following transactions occurred during the year a. Film, costumes, and similar raw materials purchased on account, $198,000. b. Film, costumes, and other raw materials used in production, $213,000 (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: $85,000. d. Depreciation recorded on the studio, cameras, and other equipment. $97,000. 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, $143,000 Costs for salaries and wages were incurred as follows: $95.000 Direct labor (actoes and directors) Indirect labor (carpenter to build sets, costume designers, and so forth) Administrative salaries $ 123,000 $ 100,000 g. Prepaid insurance expired during the year. $8.300 (75% related to production of videos, and 25% related to marketing and administrative activities). h. Miscellaneous marketing and administrative expenses incurred $9.900. Studio (manufacturing) overhead was applied to videos in production. The company used 6,800 camera-hours during the year. 1. Videos that cost $563,000 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 $951,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $613,000 Collections from customers during the year totaled $863,000. m. Payments to suppliers on account during the year. $513,000 payments to employees for salaries and wages. $320.000 Required: 1. Prepare a Taccount 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 to through my above 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? 1. 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. Reg 1 and 2 Rec 3 Reg 4 Reg 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 Credit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Raw Materials Prepaid Insurance Debu Credit Credit Beginning Balance Debit Begening Balance Ending Endege Videos in Process Finished Goods Debit Credit bebit Deginning Balance Credit Begge Endangan Ending Balance Ending Balance Studio and Equipment Debit Credit Accumulated Depreciation Debit Boginning Balance Credit Beginning Balance Ending Balance Ending Blanco Studio Overhead Depreciation Expense Credit Credit Debit Beginning Banco Dehit Beginning Balance Ending balance Advertising Expense Insurance Expense Advertising Expense Debit Credit Credit Debit Beginning Balance Beginning Balance Miscellaneous Expense Debit Credit Administrative Salaries Expense Debat Credit Beginning Balance Beginning Balance Ending Balance Cost of Goods Sold Sales Debil Credit Credit Debit Beginning Balance Beginning Balance Enong Balance Ending Balance Salaries & Wages Payable Accounts Payable Det Credit Debit Crecht Ending Balance Ending Balance Accounts Payable Salaries & Wages Payable Debit Credit Credit Debit Beginning Balance Boginning Balance Ending Balance Ending Balance Retained Earnings Capital Stock Debit Credit Credit Debit Beginning Balance Beginning face Ending Balance Ending Balance RA Req3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req 6 Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year? By how much? Manufacturing overhead was by for the year Req 1 and 2 Req3 Req 4 Reg 5 Reg 6 Prepare a schedule of cost of goods manufactured. Supreme Videos, Incorporated Schedule of Cost of Goods Manufactured Direct materials Total uw matanals available Raw materials used in production Direct materials used in production Tot mutacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured Req 1 and 2 Reg 3 Req 4 Req 5 Reg 6 Prepare a schedule of cost of goods sold. Supreme Videos, Incorporated Schedule of Cost of Goods Sold Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Prepare an income statement for the year. Supreme Videos, Incorporated Income Statement For the Year Ended December 31 Selling and administrative expenses