Supreme Videos, Incorporated, produces short musical videos for sale to retail cutlets. The compiriy's balance sheet occounts as of January 1 , are given below, Because the videos differ in length and in complexity of production, the company uses a job-ordor costing system to dotermine the cost of each video produced. Studio (manufacturing) overhesd is charged to videos on the basis of camera hours of activity. The company's predetermined overheod rate for the year is based on a cost formula that estimated $315,000 in manufacturing overhesd for an estimated allocation base of 7,000 camera-hours. The following trainsactions occuried during the year: a. Film, costumes, and similar raw materials purchased on account, $194,000 b. Film, costumes, and other faw materials used in production, $209,000 (75\% of this material was considered direct to the videos in production, and the other 25% was considered indirect). c. Uility costs incurred in the production studio, $81,000 d. Depreciation tecorded on the studio, cameras, and other equipment, $93,000. Three-fourths of this depreciation related to prodiction of the videos, and the remainder related to equipment used in marketing and administration. a. Advertising expense incurred on account, $139,000. f. Costs for salaries and wages were incurred as follows: 9. Prepaid insurance explred during the year, $7,900,70% related to production of videos, and 30% related to marketing and administrative activites). h. Miscellaneous marketing and administrative expenses incurred, $9,500, L. Studio (manufacturing) overthead 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 theit job cost sheets were transterred to the finished videos warehouse to await sale and shipment. k. Soles 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. Payments to suppliers on account during the yeat, $509,000, payments to employees for salaries and wages, $300,000. 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 Taccounts. Key your entries to the letters (o) 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 manulactured. 5 . Prepare a schedule of cost of goods sold. 6. Prepare an income statement for the yeat. Supreme Videos, incorporated, produces short musical videos for sale to retal 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 (manufacturingl overhead is charged to videos on the basis of camerahours of activity. The company's predetermined overhead rate for the year is based on a cost formula that estimated $315,000 in manutacturing 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, $209,000 (75\% 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 related 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. Prepaid insurance expired during the year, $7,900 (70\% related to production of videos, and 30% related to marketing and administrative actlivities). h. Miscellaneous marketing and administrative expenses incurred, $2,500 i. Studio (manufacturing) overhead was applied to videos in production. The company used 8,000 camera-hours during the year. 1. Videos that cost $5 k. Sales for the year totaled $943,000 and were al 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. Payments to suppliers on account during the year, $09,000; payments to employees for salaries and wages, $300,000 Required: 1. Prepare a T-account for each account on the company's balance sheet and enter the beginning balances. 2. Record the transactions drectly 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 on income statement for the yoar