Supreme Videos, Incorporated, produces short musical videos for sale to retail outlets. The company's balance sheet accounts as or January 1, are given below $70,000 117.000 Supreme Videos. Incorporated Balance Sheet Assets Current assets Caah Mecounts receivable Inventores Raw materials in, costumes $ 45,000 Videos in process 23,000 Finished videos awaiting sale 96,000 Prepaid Lauren Total current assets Studio and equipment 760,000 Les acelated depreciation 225,000 Total assets Liabilities and Stockholders' Toity Accounts payable Capital stock 5 504,000 Retained earnings 285.000 Total liabilities and stockholders' equity 150,00 12.000 271.000 535,000 5.906.000 117,000 789.000 906.000 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 $270,000 in manufacturing overhead for an estimated allocation base of 6,000 camera hours. The following transactions occurred during the year a Fim, costumes, and similar raw materials purchased on account, $200,000 b. Film, costumes, and other raw materials used in production, $215,000 (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, $87.000. d. Depreciation recorded on the studio, cameras, and other equipment $99,000. 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. $145.000, f. Costs for salaries and wages were incurred as follows: F 99.000 Direer Labor (Actors and directors Indirect labor carpentere to build not com designers, and so forth) Asistentive salaries $125,000 $ 110,000 g. Prepaid insurance expired during the year. $8.500 (755 related to production of videos, and 25% related to marketing and administrative activities) h. Miscellaneous marketing and administrative expenses incurred, 510,00 Studio manufacturing overhead was applied to videos in production. The company used 7,800 camerahouts during the year. J. Videos that cost $565,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to awal sole and shipment Sales for the year totaled $955,000 and were all on account. The total cost to produce these videos according to their job Cos sheets was $615.000 Collections from customers during the year fotled $865,000 m. Payments to suppliers on account during the year. $515.000 payments to employees for salaries and wages 5322.000 Required: 1. Prepare a Taccount for each account on the company's balance sheet and enter the beginning balances 2. Record the transactions directly into the accounts 3. 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. Req 1 and 2 Reg 3 Req 4 Req 5 Req 6 Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year? E Manufacturing overhead was by for the year Prepare a schedule of cost of goods manufactured. Supreme Videos, Incorporated Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Direct materials used in production 7 Total manufacturing costs added to production Total manufacturing costs to account for 0 Cont of goods manufactured Prepare a schedule of cost of goods sold. Supreme Videos, Incorporated Schedule of Cost of Goods Sold Prepare an income statement for the year. Supreme Videos, Incorporated Income Statement For the Year Ended December 31 + 0 Selling and administrative expenses: 0 $ 0