QUESTION 4Not completePoints out of 42.00 Flag question

Question text

Service Cost Flows

Vente Marketing, Ltd., produces television advertisements for businesses that are marketing products in the western provinces of Canada. To achieve cost control, Vente Marketing uses a job cost system similar to that found in a manufacturing organization. It uses some different account titles:

Account	Replaces
Videos-in-Process	Work-in-Process
Video Supplies Inventory	Manufacturing Supplies Inventory
Cost of Videos Completed	Cost of Goods Sold
Accumulated Depreciation, Studio Assets	Accumulated Depreciation, Factory Assets

Studio Overhead

Manufacturing Overhead

Vente Marketing does not maintain Raw Materials or Finished Goods Inventory accounts. Materials, such as props needed for videos, are purchased as needed from outside sources and charged directly to Videos-in-Process and the appropriate job. Videos are delivered directly to clients upon completion. The April 1, balances were as follows:

Video Supplies		$1,300
Videos-in-Process		2,000
Studio Overhead		250	underapplied

During April, Vente Marketing completed the following production transactions:

1. Purchased video supplies costing $1,890 on account.

2. Purchased material for specific jobs costing $32,000 on account.

3. Incurred direct labor costs of $65,000 and indirect labor costs of $3,100.

4. Used production supplies costing $1,350.

5. Recorded studio depreciation of $8,500.

6. Incurred miscellaneous payables for studio overhead of $2,300.

7. Applied studio overhead at a predetermined rate of $23 per studio hour, with 520 studio hours.

8. Completed jobs costing $105,000 and delivered them directly to clients.

(a.) Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Videos Completed.

Videos-in-Process
Bal.	2,000	Answer 0
	Answer 0	Answer 0
	Answer 0	Answer 0
	Answer 0	Answer 0

Other Payables
	Answer 0	Answer 0
	Answer 0	Answer 0

Cost of Videos Completed
	Answer 0	Answer 0
	Answer 0	Answer 0
	Answer 0	Answer 0

Videos Supplies Inventory
Bal.	1,300	Answer 1,350
	Answer 1,890	Answer 1,840

Studio Overhead
Bal.	250	Answer 11,960
	Answer 2,300	Answer 0
	Answer 3,100	Answer 0
	Answer 8,500	Answer 2,190
	Answer 14,150	Answer 14,150

Accounts Payable
	Answer 0	Answer 0
	Answer 0	Answer 0

Wages Payable
	Answer 0	Answer 0
	Answer 0	Answer 0

Accumulated Depreciation-Studio Assets
	Answer 0	Answer 0
	Answer 0	Answer 0

(b.) Calculate the cost incurred as of the end of Apirl for the incompete jobs still in process.

$

Answer

0

QUESTION 4 Not complete Points out of 42.00 Flag question Service Cost Flows Vente Marketing, Ltd., produces television advertisements for businesses that are marketing products in the western provinces of Canada. To achieve cost control, Vente Marketing uses a job cost system similar to that found in a manufacturing organization. It uses some different account titles: Account Replaces Videos-in-Process Video Supplies Inventory Cost of Videos Completed Accumulated Depreciation, Studio Assets Accumulated Depreciation, Factory Assets Studio Overhead Vente Marketing does not maintain Raw Materials or Finished Goods Inventory accounts. Materials, such as props needed for videos, are purchased as needed from outside sources and charged directly to Videos-in-Process and the approprlate job. Videos are delvered directly to clients upon completion. The April 1, balances were as follows: Video Supplies $1,300 Videos-In-Process 2,000 Studio Overhead Work-in-Process Manufacturing Supplies Inventory Cost of Goods Sold Manufacturing Overhead 250 underapplied During April, Vente Marketing completed the following production transactions: 1. Purchased video supplies costing $1,890 on account. 2. Purchased material for specific jobs costing $32,000 on account. 3. Incurred direct labor costs of $65,000 and indirect labor costs of $3,100 4. Used production supplies costing $1,350 5. Recorded studio depreciation of $8,500. 6. Incurred miscellaneous payables for studio overhead of $2,300. 7. Applied studio overhead at a predetermined rate of $23 per studio hour, with 520 studio hours. 8. Completed jobs costing $105,000 and dellvered them directly to clients. (a.) Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Videos Completed