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

Supreme Videos, Inc. Balance Sheet January 1
Assets
Current assets:
Cash				$	80,000
Accounts receivable					119,000
Inventories:
Raw materials (film, costumes)	$	47,000
Videos in process		20,000
Finished videos awaiting sale		98,000			165,000
Prepaid insurance					12,400
Total current assets					376,400
Studio and equipment		764,000
Less accumulated depreciation		227,000			537,000
Total assets				$	913,400
Liabilities and Stockholders' Equity
Accounts payable				$	120,400
Capital stock	$	506,000
Retained earnings		287,000			793,000
Total liabilities and stockholders' equity				$	913,400

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 companys predetermined overhead rate for the year is based on a cost formula that estimated $230,000 in manufacturing overhead for an estimated allocation base of 5,000 camera-hours. The following transactions occurred during the year:

1. Film, costumes, and similar raw materials purchased on account, $202,000.
2. Film, costumes, and other raw materials used in production, $217,000 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect).
3. Utility costs incurred on account in the production studio, $89,000.
4. Depreciation recorded on the studio, cameras, and other equipment, $101,000. Three-fourths of this depreciation related to production of the videos, and the remainder related to equipment used in marketing and administration.
5. Advertising expense incurred on account, $147,000.
6. Costs for salaries and wages were incurred on account as follows:

Direct labor (actors and directors)	$	99,000
Indirect labor (carpenters to build sets, costume designers, and so forth)	$	127,000
Administrative salaries	$	112,000

7. Prepaid insurance expired during the year, $8,700 (80% related to production of videos, and 20% related to marketing and administrative activities).
8. Miscellaneous marketing and administrative expenses incurred on account, $10,300.
9. Studio (manufacturing) overhead was applied to videos in production. The company used 7,800 camera-hours during the year.
10. Videos that cost $567,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment.
11. Sales for the year totaled $959,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $617,000.
12. Collections from customers during the year totaled $867,000.
13. Payments to suppliers on account during the year, $517,000; payments to employees for salaries and wages, $324,000.

Required:

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.

PLEASE FINISH THE LAST THREE TABLES, ALL INFORMATION GIVEN IS CORRECT.

PLEASE SHOW ALL WORK AND HOW YOU GOT THE NUMBERS.

THANKS

Beg. Bal. Cash 80,000 867,000 Beg. Bal. Accounts Receivable 119,000 959,000 867,000 841,000 m. I. End. Bal. 106,000 End. Bal. 211,000 Beg. Bal. Raw Materials 47,000 202,000 217,000 Beg. Bal. Prepaid Insurance 12,400 8,700 a b. g. End. Bal. 32,000 End. Bal. 3,700 Beg. Bal. Beg. Bal. Videos in Process 20,000 184,450 567,000 99,000 358,800 Finished Goods 98,000 567,000 617,000k. b. End. Bal. 48,000 End. Bal. 95,250 Studio and Equipment 764,000 Beg. Bal. Beg. Bal. Accumulated Depreciation 227,000 101,000 d. End. Bal. 328,000 End. Bal. 764,000 Studio Overhead Beg. Bal. o Beg. Bal. Depreciation Expense 01 25,250 358,800i. 32,550 89,000 75,750 127,000 6,960 End. Bal. 25,250 End. Bal. 27,540 Beg. Bal. Insurance Expense 0 1,740 Beg. Bal. Advertising Expense 0 147,000 1,740 147,000 Beg. Bal. Miscellaneous Expense 0 10,300 Beg. Bal. Administrative Salaries Expense 0 112,000 10,300 End. Bal. 112,000 Sales Cost of Goods Sold O 617,000 Beg. Bal. k. Beg. Bal. 07 959,000 k. End. Bal. 617,000 End. Bal. 959,000 Salaries & Wages Payable 0 Beg. Bal. Beg. Bal. m. ~ 324,000 338,000 m. Accounts Payable 0 517,000 202,000 a. 89,000C. 147,000 . 10,300 n. 000 End. Bal. L 14,000 End. Bal. 68,700 Retained Earnings 287,000 Capital Stock 506,000 Beg. Bal. Beg. Bal. End. Bal. 287,000 End. Bal. | 506,000 Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year? Manufacturing overhead was overapplied by $ 27,540 for the year. Supreme Videos, Inc. Schedule of Cost of Goods Manufactured Direct materials: $ Beginning raw materials inventory Add: Purchases of raw materials Total raw materials available Less: Ending raw materials inventory Raw materials used in production Less: Indirect materials Direct labor Manufacturing overhead applied to work in process Total manufacturing costs Add: Beginning work in process inventory 47,000 202,000 249,000 32,000 217,000 32,550 184,450 Less: Ending work in process inventory Cost of goods manufactured $ 959,000 959,000 SUPREME VIDEOS, INC. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses: Depreciation expense Advertising expense Administrative salaries Insurance expense Miscellaneous expense Net operating income $ 959,000 Supreme Videos, Inc. Schedule of Cost of Goods Sold