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. Supreme Videos, Inc. Balance Sheet January 1 Assets Current assets: Cash Accounts receivable Inventories: Videos in process $ 79,000 118,000 Raw materials (film, costumes) $46,000 24,000 Finished videos awaiting sale 97,000 167,000 Prepaid insurance 12,200 Total current assets 376,200 Studio and equipment 762,000 Less accumulated depreciation 226,000 536,000 Total assets $912,200 Liabilities and Stockholders' Equity Accounts payable $121,200 Capital stock $505,000 Retained earnings 286,000 Total liabilities and stockholders' equity 791,000 $912,200 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 $294,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. The following transactions occurred during the year: