Service Cost Flows Cutwater, an advertising agency with offices in San Francisco and New York, develops marketing campaigns for companies in the United States and overseas. To achieve cost control, assume Cutwater uses a job cost system similar to that found in a manufacturing organization. It uses some different account titles. Jobs in Process Account Job Supplies Inventory Cost of Videos Completed Replaces Work-in-Process Manufacturing Suppilas Inventory Cust of Goods Sold Accumulated Depreciation, Agency Assets Accumulated Depreciation, Factory Assets Production Overhead Manufacturing Overhead Outwater does not maintain Raw Materials or Finished Goods Inventory accounts. Materials, such as props needed for video shoots, are purchased as needed from outside sources and charged directly to jobs-in-Process and the appropriate job. The April 1, balances were as follows: Job Supplies Inventory $10,000 Jobs-in-Process Production Overhand 200,000 2,850 underapplied During April, Cutwater completed the following production transactions: 1. Purchased job supplies costing $4,500 on account. 2. Purchased material for specific jobs costing $150,000 on account. 3. Incurred direct labor costs of $225,000 and indirect labor costs of $155,000. 4. Used production supplies costing $2,200, 5. Recorded equipment depredation of $12,000. 6. Incurred miscellaneous payable for studio overhead of $78,000. 7. Applied production overhead at a predetermined rate of $100 per production hour, based on 2,500 production hours. 8. Completed jobs costing $622,000. (a) Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Jobs Completed. Production Overhead Jobs-in-Process Bal 200,000 Bal 0x 0x 0 0x Other Payables 0 2850 0x 0x Ux 2,500x Accounts Payable 0 4,500 0150,000 Cost of Jobs Completed 622,000 0 Wages Payable 0380,000 Job Supplies Inventory Ball 10,000 4,500x Accumulated Depreciation Agency Assets 12,000 5,500x (b) Calculate the cost incurred as of the end of April for the incomplete jobs still in process. $ 250,000