Supreme Videos, Inc, produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1, the beginning of its fiscal year, are given below:

Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1, the beginning of its fiscal year, are given below: Supreme Videos Balance Sheet Assets Current assets: Cash Accounts receivable Inventories 63,000 102,000 $30,000 45,000 Raw materials (film, costumes) Videos in process Finished videos awaiting sale 81,000 156,000 Prepaid insurance 9,000 Total current assets Studio and equipment Less accumulated depreciation 210,000 520,000 Total assets $850,000 Liabilities and Stockholders' Equity Accounts payable Capital stock Retained earnings $160,000 270,000 690,000 $850,000 $420,000 Total liabilities and stockholders' equity Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine the 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 $280,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. The following transactions were recorded for the year cost of each video produced. Studio (manufacturing) overhead is charged a. Film, costumes, and similar raw materials purchased on account, $185,000 b. Film, costumes, and other raw materials issued to production, $200,000 (85% of this material was considered indirect). considered direct to the videos in production, and the other 15% was c. Utility costs incurred in the production studio, $72,000. d. Depreciation recorded on the studio, cameras, and other equipment, $84,000. Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration e. Advertising expense incurred, $130,000. f. Costs for salaries and wages were incurred as follows: $ 82,000 Direct labor (actors and directors) Indirect labor (carpenters to build sets