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. Assets Current assets: Cash Accounts receivable Inventories: Supreme Videos, Incorporated Balance Sheet January 1 Raw materials (film, costures) Videos in process Finished videos awaiting sale Prepaid Insurance Total current assets Studio and equipment Less accumulated depreciation Total assets Liabilities and Stockholders Equity Accounts payable Capital stock Retained earnings Total 1labilities and stockholders" equity $ 30,000 45,000 81,000 730,000 210,000 Direct Labor (actors and directors) Indirect labor (carpenters to build sets, costume designers, and so forth) Administrative salaries 270,000 $ 63,000 102,000 156,000 9,000 330,000 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 $280,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. The following transactions occurred during the year 520,000 $ 850,000 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 considered direct to the videos in production, and the other 15% was considered indirect. $ 32,500 $ 110,000 $ 95,000 $ 160,000 690,000 $ 850,000 e Utility costs incurred in the production studio, $72.000. d. Depreciation recorded 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. Costs for salanes and wages were incurred as follows: g. Prep rance 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. 1 Studio (manufacturing) overhead was applied to videos in production. The company used 7.250 camera-hours during the year JVideos that cost $550,000 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 $925.000 and were all on account. The total cost to produce these videos according to their job cost sheets was $600,000 L Collections from customers during the year totaled $850.000 m. Payments to suppliers on account during the year. $500,000, payments to employees for salaries 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 directly into the T-accounts 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

Supreme Vdeok, incorporded, produces short musical videos for sale to reat outsts. The companys balance uhest accounts as of jarnary 2 are given belove Because the videos differ in length and in complexty of production, the compary ures a job-order costrng systimm to detemine the cost of each video produced. Studio (manufacturingl overtead is charged to videos on the basis of camera hours of accovity, The company/s predetermined overhead rote for the yesr is based on a cost formula that estamated $280,000 in manufacturing overthead for an estimated allocation base of 7,000 camera hourk. The following trancactors occurred durting the year: a. Film costumes, and similiar raw materials purchased on account $185000 production, and the other 15% was considered indirects. c. Utity costs incurred in the producson studia, $72000 d. Deprectation recorded on the studio, cameras, and other equlpment $84,000. Three fourtss of this deprectason related to production of the videok, and the remainder relatid to equlpmert used in makketing and adminatuation. e. Advorting expense incurred on account $130000 f Costs for salaries and wapes were incurred as follows: Oirect fabor ractori and alrectires) Indirect dater (carpentars to bulil sets, costane deslemers, and so tortw) Adindstrative salartes 9. Prepald insurance expired during the yeas, 57,000 , 80% related to production of videor. and 20% related to marketing and administratove activiteri). h. Mscellaneous marketing and administrative expenses incumed, $8,600 ISudio imanufacturingl overhead was applied to videos in production. The conpary used 7250 camerahours durng the yeas: I. Videcs that cost $550,000 to produce according to their job cort cheots wero vancforted to the finlched vidocs warehoure to awidt sale and shipment. k. Sales for the year totaled $925,000 and were all on accourt. The total cost to produce these videos according to thear job cost: sheets was $600,000. 1 Collections from customers during the year totaied $850,000 m. Payments to suppliers on accourt during the year, $500,000, paymerts to employees for salares and weges. $285,000. Required: Requiredt 1. Prepare a T-account for each account on the compenys balance sheet and enter the beginning balances 2 Record the transactions directly into the J-accounts. 3. is the Studio (manufacturing) Overhead account underappled or overappled for the yea? By how muche? 4. Prepare a schedule of cost of goods manufactured. 5. Prepare a schedule of cost of goods soid. 6. Prepare an income statemert for the yoar Supreme Vdeok, incorporded, produces short musical videos for sale to reat outsts. The companys balance uhest accounts as of jarnary 2 are given belove Because the videos differ in length and in complexty of production, the compary ures a job-order costrng systimm to detemine the cost of each video produced. Studio (manufacturingl overtead is charged to videos on the basis of camera hours of accovity, The company/s predetermined overhead rote for the yesr is based on a cost formula that estamated $280,000 in manufacturing overthead for an estimated allocation base of 7,000 camera hourk. The following trancactors occurred durting the year: a. Film costumes, and similiar raw materials purchased on account $185000 production, and the other 15% was considered indirects. c. Utity costs incurred in the producson studia, $72000 d. Deprectation recorded on the studio, cameras, and other equlpment $84,000. Three fourtss of this deprectason related to production of the videok, and the remainder relatid to equlpmert used in makketing and adminatuation. e. Advorting expense incurred on account $130000 f Costs for salaries and wapes were incurred as follows: Oirect fabor ractori and alrectires) Indirect dater (carpentars to bulil sets, costane deslemers, and so tortw) Adindstrative salartes 9. Prepald insurance expired during the yeas, 57,000 , 80% related to production of videor. and 20% related to marketing and administratove activiteri). h. Mscellaneous marketing and administrative expenses incumed, $8,600 ISudio imanufacturingl overhead was applied to videos in production. The conpary used 7250 camerahours durng the yeas: I. Videcs that cost $550,000 to produce according to their job cort cheots wero vancforted to the finlched vidocs warehoure to awidt sale and shipment. k. Sales for the year totaled $925,000 and were all on accourt. The total cost to produce these videos according to thear job cost: sheets was $600,000. 1 Collections from customers during the year totaied $850,000 m. Payments to suppliers on accourt during the year, $500,000, paymerts to employees for salares and weges. $285,000. Required: Requiredt 1. Prepare a T-account for each account on the compenys balance sheet and enter the beginning balances 2 Record the transactions directly into the J-accounts. 3. is the Studio (manufacturing) Overhead account underappled or overappled for the yea? By how muche? 4. Prepare a schedule of cost of goods manufactured. 5. Prepare a schedule of cost of goods soid. 6. Prepare an income statemert for the yoar