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:

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:

During April, Vente Marketing completed the following production transactions: 1. Purchased video supplies costing $1,800 on account. 2. Purchased material for specific jobs costing $29,000 on account. 3. Incurred direct labor costs of $65,000 and indirect labor costs of $3,100. 4. Used production supplies costing $1,050. 5. Recorded studio depreciation of $5,500. 6. Incurred miscellaneous payables for studio overhead of $2,000. 7. Applied studio overhead at a predetermined rate of $20 per studio hour, with 520 studio hours. 8. Completed jobs costing $102,000 and delivered them directly to clients. (a.) Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Videos Completed.

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

Account Videos-in-Process Video Supplies Inventory Cost of Videos Completed Accumulated Depreciation, Studio Assets Studio Overhead Replaces Work-in-Process Manufacturing Supplies Inventory Cost of Goods Sold Accumulated Depreciation, Factory Assets Manufacturing Overhead Video Supplies Videos-in-Process Studio Overhead $1,300 2,000 250 underapplied Videos-in-Process 2,000 Studio Overhead 250 Bal. Bal. Other Payables Accounts Payable Cost of Videos Completed Wages Payable Videos Supplies Inventory 1,300 Accumulated Depreciation Studio Assets Bal