Supreme Videos, Inc produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1 are given below $ 78,000 117,000 Supree Videos, Inc. Balance Sheet January 1 Assets Current assets Cash Accounts receivable Inventories: Raw materials (film, costumes) Videos in process Finished videos waiting sale Prepaid insurance Total current assets Studio and equipment Less accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Capital stock Retained earnings Total llabilities and stockholders' equity $ 45,00 23,000 96,000 750,000 225,000 164,000 12,000 371.000 535,000 3906,000 $504,000 285,000 5117,000 789,000 $906,000 Because the videos differ in length and in complexity of production, the company uses a job order costing system to determine the cost of each video produced. Studio (manufacturing) overhead is charged 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 $270,000 in manufacturing overhead for an estimated allocation base of 6,000 camero-hours. The following transactions occurred during the year a Film, costumes, and similar raw materials purchased on account, $200,000 b. Film, costumes, and other raw materials used in production $215,000 (80% of this material was considered direct to the videos in production, and the other 20% was considered indirect) c Utility costs incurred in the production studio, $87.000 d Depreciation recorded on the studio, cameros, and other equipment, $99.000 Three-fourths of this depreciation related to production of the videos, and the remainder related to equipment used in marketing and administration e Advertising expense incurred on account. $145,000 Costs for salaries and wages were incurred as follows Direct Labor (actors and directors) Indirect labor (carpenters to build sets, costume designers, and so forth) Administrative salaries $ 97,000 $ 125,000 $ 110,000 g. Prepaid insurance expired during the year, $8,500 (75% related to production of videos and 25% related to marketing and administrative activities) n. Miscellaneous marketing and administrative expenses incurred, $10,100 1. Studio (manufacturing) overhead was applied to videos in production. The company used 7,800 camera-hours during the year J. Videos that cost $565,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment k. Sales for the year totaled $955,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $615,000 Collections from customers during the year totaled $865,000 m Payments to suppliers on account during the year $515,000, payments to employees for salaries and wages, $322,000 Required: 1. Prepare a T-account for each account on the company's balance sheet and enter the beginning balances 2. Record the transactions directly into the T-accounts Key your entries to the letters (a) through (m) above. 3. Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year? By how much? 4. Prepare a schedule of cost of goods manufactured 5. Prepare a schedule of cost of goods sold 6 Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Ren 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Prepare a T-account for each account on the company's balance sheet and enter the beginning balances. Record the transactions directly into the accounts Accounts Receivable Beg Bal Cash 78000 865.000 Beg Bal 515,000 322.000 End. Bol 105.000 End Bal Prepaid Insurance Beg Bal Raw Materials 45,000 215.000 200,000 Beg Bal End B 30,000 End Hal Finished Goods Beg Bal Beg Bal Videos in Process 23,000 172.000 565.000 97000 351.000 End Dat End Bat 78.000 Studio and Equipment Accumulated Depreciation Accumulated Depreciation Studio and Equipment 760.000 Beg Bal Beg Bal End Bal End Bal 760,000 Depreciation Expense Studio Overhead Beg Bal Beg Bail 351,000 C 43 000 87,000 74,250 125,000 6375 d End Bal 1 9 End Bal 15,375 Insurance Expense Advertising Expense Beg Bail Beg Bal Miscellaneous Expense Administrative Salaries Expense Beg Bal Beg Bal End Bal Cost of Goods Sold Beg Bal Sales Beg Bal End Bal End Bal Salaries & Wages Payable Beg Bal Accounts Payable Beg Bal End. Bal End Bal Retained Earnings Capital Stock Beg Bal Beg Bal End Bal End, Bal Reo Reg. 3 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Req6 Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year? By how much? Manufacturing overhead was by for the year Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Prepare a schedule of cost of goods manufactured. Supreme Videos, Inc. Schedule of Cost of Goods Manufactured Direct materials Total raw materials available + Raw materials used in production Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured Prepare a schedule of cost of goods sold. Supreme Videos, Inc. Schedule of Cost of Goods Sold Req 1 and 2 Req3 Req 4 Req 5 Reg 6 Prepare an income statement for the year. . Supreme Videos, Inc. Income Statement For the Year Ended December 31 Selling and administrative expenses 0 0 0