Question

Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1 are given below Supreme Videos, Inc Balance Sheet January l Assets points Current assets: Cash Accounts receivable Inventories $ 78,000 117,000 Raw materials (film, cost umes) $ 45,000 23,000 96,000 eBook Videos in proces Finished videos awaiting sale Prepaid insurance Total current assets Studio and equipment 164,000 12,000 371,000 Print 760,000 225,000 Less accumulated depreciation Total assets 535, 000 $906,000 References Liabilities and Stockholders' Equity Accounts payable Capital stock Retained earnings Total 1iabilities and stockholders' equity $117,000 $504,000 285.000 789,000 $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. Film, 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 on account 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 administratio e. Advertising expense incurred on account, $145,000 f. Costs for salaries and wages were incurred on account as follows:

Answer 1

as per the HOMEWORKLIB POLICY, the first four questions should be answered. kindly take note of it

Part 1 & 2

Cash

Bal.	78000	837000	(m)
(l)	865000
Bal.	106000

Accounts Receivable

Bal.	117000	865000	(l)
(k)	955000
Bal.	207000

Raw Materials

Bal.	45000	215000	(b)
(a)	200000
Bal.	30000

Prepaid Insurance

Bal.	12000	8500	(g)
Bal.	3500

Videos in Process

Bal.	23000	565000	(j)
(b)	215000
(f)	92000
(i)	351000 (270000/6000*7800)
Bal.	116000

Finished Goods

Bal.	23000	615000	(k)
(j)	565000
Bal.	27000

Studio Overhead

(b)	43000 (215000*20%)	351000	(i)
(c)	87000
(d)	74250 (99000*3/4)
(f)	125000
(g)	6375 (8500*75%)
(n)	15375	15375	Bal.

Depreciation Expense

(d)

24750

Insurance Expense

(g)

2125 (8500*25%)

Advertising Expense

(e)

145000

Miscellaneous Expense

(h)

10100

Administrative Salaries Expense

(f)

110000

Sales

955000

(k)

Cost of Goods Sold

(k)	615000	15375	(n)
Bal.	599625

Accounts Payable

(m)	515000	117000	Bal.
		200000	(a)
		87000	(c)
		145000	(e)
		10100	(h)
		44100	Bal.

Salaries & Wages Payable

(m)

322000

322000 (97000+125000+110000)

(f)

Capital Stock

504000

Bal.

Retained Earnings

285000

Bal.

Part 3

Manufacturing overhead was overapplied by $15375 for the year.

Part 4

Direct materials:
Beginning raw materials inventory	45000
Add: Purchases of raw materials	215000
Total raw materials available	260000
Deduct: Ending raw materials inventory	30000
Raw materials used in production		230000
Direct labor		97000
Manufacturing overhead applied to work in process		235000
Total manufacturing costs		562000
Add: Beginning work in process inventory		23000
		585000
Deduct: Ending work in process inventory		116000
Cost of goods manufactured		469000