Supreme Videos, Incorporated, produces short musical videos for sale to retall 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 (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 $315.000 in manufacturing overhead for an estimated allocation base of 7.000 camera-hours. The following transactions occurred during the year: a. Film, costumes, and similar raw materials purchased on account, $194,000. b. Film, costumes, and other raw materials used in production, $209,000075% of this material was considered direct to the videos in production, and the other 25% was considered indirect). c. Utility costs incurred in the production studio, $81,000. d. Depreciation recorded on the studio, cameras, and other equipment, $93,000. Three-fourths of this depreciation reiated to production of the videos, and the remainder related to equipment used in marketing and administration. e. Advertising expense incurred on account, $139,000. f. Costs for salaries and wages were incurred as follows: 9. Prepold insurance expired during the year, $7,900(70% reloted to production of videos, and 30% related to marketing and odministrative activities). h. Miscelianeous marketing and administrative expenses incurred, $9,500. 1. Studio (manufacturing) overhead was applied to videos in production. The company used 8,000 camera-hours during the year. 1. Videos that cost $559,000 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 $943,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $609,000. 1. Collections from customers during the year totaled $859,000. m. Pavments to suppliers on account during the year, $509,000; payments to employees for salaries and wages, $300,000 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 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. 6. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Prepare a I-account tor each account on the companys Daiance sneet and enter the Deginning Dalances. Kecoro the transactions airectly into the \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Capital Stock } \\ \hline Beginning Balance \\ \hline & & \\ \hline Ending Balance & & \\ \hline \end{tabular} Ron thith Req 3