Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January are given below $70,000 109,000 Supreme Videos, Inc. Balance Sheet January Assets Current assets: Cash Accounts receivable Inventories raw materials (ile, costumes) Videos in process Finished Videos awaiting sale Prepaid insurance Total current assets Studio and equipent Less accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Capital stock Retained earnings Total liabilities and stockholders county $ 37,000 52,000 88,000 177,000 20,400 366,400 744.000 2017.000 527,000 5893,400 5189,400 $427,000 277.000 704,000 5892,400 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 company's predetermined overhead rate for the your is based on a cost formula that estimated $240,000 in manufacturing overhead for an estimated allocation base of 5.000 camera hours The following transactions occurred during the year Film costumes, and similar raw materials purchased on account, $192,000. b. Film costumes, and other raw materials used in production, $207,000 (80% of this material was considered direct to the videos in broduction, and the other 20% was considered indirect) Utility costs incurred in the production studio, $79.000 Depreciation recorded on the studio, cameras and other equipment $91,000. Three-fourths of this depreciation related to production of the videos, and the remainder related to equipment used in marketing and administration Advertising expense incurred on account. 5137000 Costs for sales and wages were incurred as follows: $ 89,000 Direct labor factors and directors Indirect labor (carpenters to build sets, costume designers, and so forth) Administrative salaries $117.000 $ 102,000 g. Prepaid insurance expired during the year $7700 (75% related to production of videos, and 259 related to marketing and administrative activities) in Miscellaneous marketing and administrative expenses incurred, $9,300. Studio (manufacturing) overhead was applied to videos in production. The company used 7,000 camera-hours during the year ) Videos that cost $557,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to a sale and shipment k. Sales for the year totaled $939,000 and were all on account. The total cost to produce these videos according to their job cost sheets was 5607000 1. Collections from customers during the year totaled $857000 im Payments to suppliers on account during the year. $507000, payments to employees for salaries and wages, $292,000. 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 accounts Key your entries to the letters (a) through (m) above 3. is the Studio (manufacturing) Overhead account underapplied or overopplied 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 yean Complete this chantai Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January are given below $70,000 109,000 Supreme Videos, Inc. Balance Sheet January Assets Current assets: Cash Accounts receivable Inventories raw materials (ile, costumes) Videos in process Finished Videos awaiting sale Prepaid insurance Total current assets Studio and equipent Less accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Capital stock Retained earnings Total liabilities and stockholders county $ 37,000 52,000 88,000 177,000 20,400 366,400 744.000 2017.000 527,000 5893,400 5189,400 $427,000 277.000 704,000 5892,400 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 company's predetermined overhead rate for the your is based on a cost formula that estimated $240,000 in manufacturing overhead for an estimated allocation base of 5.000 camera hours The following transactions occurred during the year Film costumes, and similar raw materials purchased on account, $192,000. b. Film costumes, and other raw materials used in production, $207,000 (80% of this material was considered direct to the videos in broduction, and the other 20% was considered indirect) Utility costs incurred in the production studio, $79.000 Depreciation recorded on the studio, cameras and other equipment $91,000. Three-fourths of this depreciation related to production of the videos, and the remainder related to equipment used in marketing and administration Advertising expense incurred on account. 5137000 Costs for sales and wages were incurred as follows: $ 89,000 Direct labor factors and directors Indirect labor (carpenters to build sets, costume designers, and so forth) Administrative salaries $117.000 $ 102,000 g. Prepaid insurance expired during the year $7700 (75% related to production of videos, and 259 related to marketing and administrative activities) in Miscellaneous marketing and administrative expenses incurred, $9,300. Studio (manufacturing) overhead was applied to videos in production. The company used 7,000 camera-hours during the year ) Videos that cost $557,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to a sale and shipment k. Sales for the year totaled $939,000 and were all on account. The total cost to produce these videos according to their job cost sheets was 5607000 1. Collections from customers during the year totaled $857000 im Payments to suppliers on account during the year. $507000, payments to employees for salaries and wages, $292,000. 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 accounts Key your entries to the letters (a) through (m) above 3. is the Studio (manufacturing) Overhead account underapplied or overopplied 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 yean Complete this chantai