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. $ 64,000 103,000 Supreme Videos, Inc. Balance Sheet January 1 Assets Current assets: Cash Accounts receivable Inventories: Raw materials (film, costumes) 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 liabilities and stockholders' equity $ 31,000 46,000 82,000 159,000 9,200 335,200 732,000 211,000 521,000 $856,200 $421,000 271,000 $164,200 692,00€ $856,200 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, $186,000

Answer 1

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut EB Copy Calibri 11 Α Α΄ Wrap Text General Fill - Paste BI U I Fa Merge & Center % 7 * .00 .00 0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table - Styles Styles 2 Clear Sort & Find & Filter - Select Editing Clipboard Font E Alignment Number Cells A1 foc A B C D E F G H 42 43 44 1 and 2) 45 T-Accounts Supreme Video Inc. Cash Account $ $ $ 46 47 48 Balance b/d Accounts Receivable Total 64,000.00 Salaries and Wages 8,51,000.00 Balance C/d 9,15,000.00 $ $ $ 7,87,000.00 1,28,000.00 9,15,000.00 49 50 51 Balance b/d Sales Total Accounts Receivable $ 1,03,000.00 Cash $ 9,27,000.00 Balance C/d $ 10,30,000.00 $ 8,51,000.00 $ 1,79,000.00 $ 10,30,000.00 52 53 54 55 56 57 Balance b/d Accounts Payable Total Merchandise Inventory $ 31,000.00 By Video in Process $ 1,86,000.00 Balance C/d $ 2,17,000.00 $ $ $ 2,01,000.00 16,000.00 2,17,000.00 58 59 Prepaid Insurance $ Balance b/d 60 61 9,200.00 | By Insurance Balance C/d 9,200.00 $ $ $ 7,100.00 2,100.00 9,200.00 62 Total $ 63 64 Video in Process K Sheet1 Sheet2 Sheet3 Select destination and press ENTER or choose Paste Average: 263076.8192 Count: 380 Sum: 46564597 BO 100% + Type here to search WE x ENG 11:06 24-09-2020 D

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut EB Copy Calibri 11 Α Α΄ Wrap Text General Fill - Paste I B I U Merge & Center % 9 * .00 .00 0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table Styles Styles 2 Clear Sort & Find & Filter - Select Editing Clipboard Font E Alignment Number Cells A1 foc A B C D E F G H 63 64 65 $ $ Video in Process $ $ $ $ 5,51,000.00 44,800.00 66 Balance b/d Merchandise Inventory($201000*80%) Direct Labor Overhead ($270000/6000) *6800 46,000.00 Finished Goods 1,60,800.00 Balance C/d 83,000.00 3,06,000.00 67 68 69 70 71 Total $ 5,95,800.00 $ 5,95,800.00 72 73 $ 74 75 76 Predermined Overhead rate=Estimated Overhead/Allocation base Estimated Overhead=(A) Allocation Base=(B) Predermined Overhead rate=(A)/(B) 2,70,000.00 6000 45.00 $ 77 78 79 80 Studio and Equipment $ Balance b/d 7,32,000.00 By Balance C/d $ 7,32,000.00 $ 7,32,000.00 $ 7,32,000.00 81 Total 82 83 84 85 Balance b/d 06 viden in Drococe » Sheet1 Sheet2 Sheet3 Ready MI Finished Goods $ 82,000.00 By Cost of good sold $ 6,01,000.00 Ć 5 51 nnnnn D Dalannard 22 nnnnn Average: 263076.8192 Count: 380 Sum: 46564597 OU 100% - Type here to search WE x ENG 11:07 24-09-2020

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut EB Copy Calibri 11 Α Α΄ Wrap Text General Fill - Paste I B I U Fa Merge & Center % 9 * .00 .00 0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table - Styles Styles 2 Clear Sort & Find & Filter - Select Editing Clipboard Font E Alignment Number Cells A1 foc A B С D E F G H 84 85 86 Balance b/d Video in Process Total Finished Goods $ $ $ 82,000.00 By Cost of good sold 5,51,000.00 By Balance C/d 6,33,000.00 $ $ $ 6,01,000.00 32,000.00 6,33,000.00 87 88 89 90 To Balance C/d Accumulated Depreciation $ 2,96,000.00 | By Balance b/d By Depreciation $ 2,96,000.00 91 $ $ $ 2,11,000.00 85,000.00 2,96,000.00 Total 92 93 94 $ 3,06,000.00 95 96 97 98 99 100 Indirect Material($201000*20%) Utility Expenses Depreciation Indirect Labor Prepaid Insurance($7100*75%) To Cost of goods sold Total Studio Overhead $ $ $ $ $ $ $ 40,200.00 By Video in Process 73,000.00 63,750.00 1,11,000.00 5,325.00 12,725.00 3,06,000.00 101 $ 3,06,000.00 102 103 104 To Accumulated Depreciation($85000*1/4) Depreciation Expense $ 21,250.00 By Balance C/d $ 21,250.00 105 $ 21,250.00 $ 21,250.00 106 Total + Sheet1 Sheet2 Ready Sheet3 Average: 263076.8192 Count: 380 Sum: 46564597 BO 100% - Type here to search WE x ENG 11:07 24-09-2020

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - Calibri 11 Α Α΄ Wrap Text General Fill - * Cut EB Copy Paste Format Painter Clipboard I B I U Fa Merge & Center % 9 * .00 .00 0 Insert Delete Format Conditional Format Cell Formatting as Table - Styles Styles 2 Clear Sort & Find & Filter - Select Editing Font E Alignment Number Cells A1 foc A B C D E F G H 108 Insurance Expense $ To Prepaid Insurance($7100*25%) 1,775.00 By Balance C/d $ 1,775.00 1091 1101 111 Total $ 1,775.00 $ 1,775.00 112 113 114 1151 Advertisement Expense $ 1,31,000.00 By Balance C/d To Accounts Payable $ 1,31,000.00 116 Total $ 1,31,000.00 $ 1,31,000.00 117 118 Miscellaneous marketing and administrative expenses $ 8,700.00 By Balance C/d To Accounts Payable $ 8,700.00 1191 120 Total $ 8,700.00 $ 8,700.00 121 1221 123 Administrative Salaries Expense $ 96,000.00 By Balance C/d 124 To Accounts Payable $ 96,000.00 125 126 Total $ 96,000.00 $ 96,000.00 127 128 Sales To Balance C/d $ 9,27,000.00 By Accounts Receivable $ 9,27,000.00 129 130 > Sheet1 Sheet2 Sheet3 Ready Average: 263076.8192 Count: 380 Sum: 46564597 OM 100% Type here to search WE x Y ENG 11:07 24-09-2020

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut EB Copy Calibri 11 Α Α΄ Wrap Text General Fill - Paste I B I U Merge & Center % 9 * .00 .00 0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table - Styles Styles 2 Clear Sort & Find & Filter - Select Editing Clipboard Font E Alignment Number Cells A1 foc A B C D E F G H 133 Cost of goods sold $ 134 To Finished Goods 135 6,01,000.00 By Studio in Process By Balance C/d 6,01,000.00 $ $ $ 12,725.00 5,88,275.00 6,01,000.00 136 Total $ 137 138 139 To Finished Goods To Balance C/d Accounts Payable $ $ 140 141 142 143 5,01,000.00 By Balance b/d $ 61,900.00 By Merchandise Inventory $ By Studio Overhead $ By Advertisement Expenses By Miscellaneous Expense $ 1,64,200.00 1,86,000.00 73,000.00 1,31,000.00 8,700.00 144 Total $ 5,62,900.00 $ 5,62,900.00 145 146 1471 148 Salaries & Wages Payable By Salaries and Wages $ 2,86,000.00 Expense $ 4,000.00 $ 2,90,000.00 $ 2,90,000.00 To Cash To Balance C/d Total 149 150 | $ 2,90,000.00 151 152 153 Capital Stock 154 To Balance C/d $ 4,21,000.00 By Balance B/d $ 4,21,000.00 Sheet2 Sheet3 Sheet1 Ready MI Average: 263076.8192 Count: 380 Sum: 46564597 100% Type here to search j WE x ENG 11:07 24-09-2020

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - Calibri 11 Α Α΄ Wrap Text General Fill - * Cut EB Copy Paste Format Painter Clipboard I B I U Fa Merge & Center % 9 * .00 .00 0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear Sort & Find & Filter - Select Editing Font E Alignment Number Cells A1 foc A B С D E F G H Capital Stock 153 154 To Balance C/d $ 4,21,000.00 By Balance B/d $ 4,21,000.00 155 2,71,000.00 By Balance B/d $ 2,71,000.00 Amount 156 157 Retained Earnings 158 To Balance C/d $ 159 160 1613) Overhead is over applied by $12725 transferred to cost of goods sold 162 Supreme Video Inc. 1634) Cost of Goods manuafactured 164 165 166 Direct Material 167 Beginning Raw Material Inventory $ 168 Add: Purchases $ 169 Total raw material available $ 170 Less: Ending Raw Material $ 171 Total raw material available 172 Raw Material used in Production($201000*80%) 173 Direct Labor 174 Manuafcturing Overhead 175 Indirect Material $ 1761 indirort Labor $ K™ Sheet1 Sheet2 Sheet3 Ready 31,000.00 1,86,000.00 2,17,000.00 - 16,000.00 $ $ $ 2,01,000.00 1,60,800.00 83,000.00 40,200.00 1 11 nnnnn Average: 263076.8192 Count: 380 Sum: 46564597 BE OU 100% - + Type here to search WE x ENG 11:07 24-09-2020

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut EB Copy Calibri 11 Α Α΄ Wrap Text General Fill - Paste BI U I Fa Merge & Center % 7 * .00 .00 0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table - Styles Styles 2 Clear Sort & Find & Filter - Select Editing Clipboard Font E Alignment Number Cells A1 foc A B C D E F G H Cost of Goods manuafactured 1634) 164 165 Amount $ $ $ $ 31,000.00 1,86,000.00 2,17,000.00 - 16,000.00 $ $ $ 2,01,000.00 1,60,800.00 83,000.00 166 Direct Material 167 Beginning Raw Material Inventory 168 Add: Purchases 169 Total raw material available 170 Less: Ending Raw Material 171 Total raw material available 172 Raw Material used in Production($201000*80%) 173 Direct Labor 174 Manuafcturing Overhead 175 Indirect Material 176 Indirect Labor 177 Utilties:Plant 178 Depreciation: Plant & Equipment 179 Other($5325+$12725) 180 Total Manufacturing Overhead 181 Total Manufacturing Cost 182 Add: Work in Process January 1st, 183 Total 184 Less: Work in Process Ending Dec 31st 185 Cost of goods manufactured 1861 Sheet1 Sheet2 Sheet3 Ready MI $ $ $ $ $ 40,200.00 1,11,000.00 73,000.00 63,750.00 18,050.00 $ $ $ $ $ $ $ 3,06,000.00 5,49,800.00 46,000.00 5,95,800.00 -44,800.00 5,51,000.00 Average: 263076.8192 Count: 380 Sum: 46564597 BE OU 100% - + Type here to search WE x ENG 11:07 24-09-2020

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X х AutoSum - * Cut EB Copy Calibri 11 Α Α΄ Wrap Text General Fill - Paste I B I U Fa Merge & Center % 9 * .00 .00 0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table - Styles Styles 2 Clear Sort & Find & Filter - Select Editing Clipboard Font E Alignment Number Cells A1 foc A B C D E F G H 186 1875) 188 Supreme Video Inc. Cost of goods sold 189 190 191 192 193 194 Amount $ 82,000.00 $ 5,51,000.00 $ 6,33,000.00 $ 32,000.00 $ 6,01,000.00 $ -12,725.00 $ 5,88,275.00 195 196 1971 1986) 199 200 201 Beginning Finished goods Inventory=(A) Add: Cost of goods manufactured=(B) Cost of goods available for sale(C)=(A)+(B) Less: Ending Finished goods Inventory=(D) Unadjusted cost of goods sold Less: Overapplied Overhead Adjusted cost of goods sold Supreme Video Inc. Income Statement Sales of Video Less: Cost of good sold Gross Margin Selling and Administrative Expense: Depreciation Expense Advertising Expense Administrative Salaries Insurance Expense Miscellaneous marketing and administrative expenses Net Operating Income $ $ $ 9,27,000.00 -5,88,275.00 3,38,725.00 202 203 204 2051 $ $ $ $ $ 21,250.00 1,31,000.00 96,000.00 1,775.00 8,700.00 $ $ 206 2071 208 2,58,725.00 80,000.00 209 KM Sheet1 Sheet2 Sheet3 Ready PE Average: 263076.8192 Count: 380 Sum: 46564597 BO 100% - Type here to search WE x ENG 11:07 24-09-2020