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Star Videos, Incorporsted, produces short musical videos for sale to retsil outlets. The company's balance sheet accounts as of January 1 are given below. Because
Star Videos, Incorporsted, produces short musical videos for sale to retsil outlets. The company's balance sheet accounts as of January are given below.
Because the videos differ in length and in complexity of production, the compony uses a joborder costing system to determine the cost of each video produced. Studio manufacturing overhead is charged to videos on the bosis of camershours of activity. The compsny's predetermined overhesd rate for the yes $ per comershour is bssed on a cost formuls that estimsted $ in manufacturing overhead for an estimated allocation bsse of camerahours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transections were recorded for the year:
a Film, costumes, and similar raw materials purchased on account, $
b Film, costumes, and other row materials issued to production, $ of this material was considered direct to the videos in production, and the other wos considered indirect
c Utility costs incurred on account in the production studio, $
d Depreciation recorded on the studio, comerss, and other equipment, $ Threefourths of this deprecistion related to actual production of the videos, and the remsinder related to equipment used in marketing and odministration.
e Advertising expense incurred on account $
f Salaries and wages paid in cash as follows:
Direct labor actors and directors
tableIndirect labor carpenters to build sets, costune$
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