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 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 based on camera-hours of activity. The company's predetermined overhead rate for the year is based on a cost formula that estimated $280,000 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, $185,000 b. Film, costumes, and other raw materials used in production, $200,000(85% of this material was direct to the videos in production, and the other 15% was indirect) c. Utility costs incurred in the production studio, $72,000. d. Depreciation on the studio, cameras, and other equipment, $84,000. 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, $130,000. f Costs for salaries and wages were incurred as follows: f. Costs for salaries and wages were incurred as follows: 9. Prepaid insurance expired during the year, $7,000(80% related to production of videos, and 20% related to marketing and administrative activities) h. Miscellaneous marketing and administrative expenses incurred, $8,600. i. Studio (manufacturing) overhead was applied to videos in production. The comparry used 7,250 camera-hours during the year 1. Videos that cost $550,000 to were transferted to the finished videos warehouse k Sales for the year totaled $925,000 and were all on account. The total cost to produce these videos was $600,000. 1 Collections from customers during the yeat totaled $850,000 in. Payments to suppliers on account during the year, $500,000, payments to employees for salarles and wages, $285,000. Required: 1. Prepare a T-account for each account on the company's balance sheet and enter the beginning balances 2 Record the transactions in the T-accounts. 3. is the Studio (manufacturing) Overhead account underapplied or overapplied? 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