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. $63,500 105.000 Supreme Videos, Inc. Balance Sheet January 1 Assets Current assets Cash Accounts receivable Inventories: Raw materials(film, costumes) $34,800 Videos in process 46.900 Finished videos awaiting sale 84.100 Prepaid insurance Total current assets Studio and equipment 737,000 Less accumulated depreciation 210,000 Total assets Liabilities and Stockholders' Equity Accounts payable Capital stock $421,000 Retained earnings 286,800 Total liabilities and stockholders' equity 165,800 9,500 343,800 527,000 $870.800 $ 163,000 707,800 $870,800 Because the videos differ in length and in complexity of production, the company uses a joborder 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. At the beginning of the year, the company estimated that it would work 7,100 camera-hours and incur $426,000 in studio overhead cost. The following transactions were recorded for the year a. Film, costumes, and similar raw materials purchased on account, $189,000. b. Film, costumes, and other raw materials issued to production, $202.000 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect) c. Utility costs incurred in the production studio, $73.400. d. Depreciation recorded on the studio, cameras, and other equipment, $86,000. 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, $135.000. f. 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 $82,300 $113,000 $95,150 1 CUSIS TOT Saanes anu wages were incur as TOHOWS Direct labor(actors and directors) Indirect labor (carpenters to build sets, costume designers, and so forth) Administrative salaries $82,300 $113,000 595,150 g. Prepaid insurance expired during the year, 57,700 (80% related to production of videos, and 20% related to marketing and administrative activities) h. Miscellaneous marketing and administrative expenses incurred, $8,800. i Studio (manufacturing) overhead was applied to videos in production. The company recorded 7.250 camera-hours of activity during the year. j Videos that cost $553,000 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 $931,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $602,000 1. Collections from customers during the year totaled $856,000. m. Payments to suppliers on account during the year, $507,000; payments to employees for salaries and wages, $289,450. Requirement 1: Prepare a T-account for each account on the company's balance sheet and enter the beginning balances. Make an entry, treating it as transaction "n" in the T-accounts to close any balance in the Studio Overhead account to Cost of Goods Sold. (Record the transactions in the given order. Omit the "$" sign in your response.) Cash (Click to select) Beg. Bal. (Click to select) End. Bal Accounts Receivable Beg Bal. (Click to select) (Click to select) End. Bal. Raw Materials Beg Bal . Click to enlar Prepaid Insurance Beg. Bal (Click to select) End. Bal. Videos in Process (Click to select) Beg. Bal. (Click to select) (Click to select) (Click to select) End. Bal. Finished Goods (Click to select) Beg. Bal (Click to select) End. Bal Studio and Equipment Bal Accumulated Depreciation Beg. Bal. (Click to select) End. Bal. Studio Overhead (Click to select) (Click to select) (Click to select) Studio Overhead (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) End. Bal Depreciation Expense (Click to select) Insurance Expense (Click to select) Advertising Expense (Click to select) Miscellaneous Expense (Click to select) Administrative Salaries Expense (Click to select) Sales (Click to select) Cost of Goods Sold (Click to select) (Click to select) End Bal Accounts Payable (Click to select) . Beg Bal (Click to select) (Click to select) (Click to select) (Click to select) End. Bal. Salaries & Wages Payable (Click to select) (Click to select) Bal. Capital Stock Bal Retained Earnings Bal. Requirement 2: Was manufacturing overhead underapplied or overapplied for the year? (Input the amount as positive value. Omit the "S" sign in your response.) select) v by $ for the year Manufacturing overhead was (Click to select) by $ for the year Requirement 3: Prepare an income statement for the year. (Input all amounts as positive values. Omit the "S" sign in your response.) Supreme Videos, Inc. Income Statement For the Year Ended December 31 (Click to select) (Click to select) Gross margin Selling and administrative expenses (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)