Supreme Videos, Incorporated, produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1 , are given below. 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 (manufocturing) 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 $200,000 in manufacturing overhead for an estimated allocation base of 4,000 camera-hours. The following transactions occurred during the year: a. Film, costumes, and similar raw materials purchased on account, $198,000. b. Film, costumes, and other raw moterials used in production, $213.000 ( 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, $85,000. d. Depreciation recorded on the studio, cameras, and other equipment, $97,000. 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, $143.000. f. Costs for salaries and wages were incurred as follows: 9. Prepaid insurance expired during the year, $8.300(75% related to production of videos, and 25% related to marketing and Prepaid insurance expired during the year, $8,300(75% related to production of videos, and 25% related to marketing and administrative activities). Miscellaneous marketing and administrative expenses incurred, $9,900. Studio (manufacturing) overhead was applied to videos in production. The company used 6,800 camera-hours during the year. Videos that cost $563,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment. c. Sales for the year totaled $951,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $613,000. 1. Collections from customers during the year totaled $863,000. a. Payments to suppliers on account during the year, $513,000 : payments to employees for salaries and wages, $320,000. 2equired: Prepare a T-account fot 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. 5. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below