Answer:
Req 1&2:
Req 3:
Manufacuting overhead was | Overapplied | by | 22,550 | for the year |
Req 4:
Supreme Videos Inc | ||
Schedule of Cost of Goods Manufactured | ||
Direct Materials | ||
Beginning raw materials | 46,000 | |
Add: Purchase of raw materials | 201,000 | |
Total raw materials | 247,000 | |
Less: Ending raw material inventory | 31,000 | |
Raw materials used in production | 216,000 | |
Less: Indirect materials | 43,200 | 172,800 |
Direct Labor | 98,000 | |
Manufacturing overhead applied to work in process | 361,200 | |
Total Manufacturing costs | 632,000 | |
Add: Beginning videos in process inventory | 24,000 | |
656,000 | ||
Less Ending videos in process inventory | 90,000 | |
Cost of goods manufactured | 566,000 |
Req 5:
Supreme Videos Inc | |
Schedule of Cost of Goods Sold | |
Beginning finished goods inventory | 97,000 |
Add: Cost of goods manufactured | 566,000 |
Cost of goods available for sale | 663,000 |
Less: Ending finished goods inventory | 47,000 |
Unadjusted cost of goods sold | 616,000 |
Less:Overapplied overhead | 22,550 |
Adjusted cost of goods sold | 593,450 |
Req 6:
Supreme Videos Inc | ||
Income Statement | ||
For the year ended December 31 | ||
Sales | 957,000 | |
Cost of Goods Sold | 593,450 | |
Gross Margin | 363,550 | |
Selling and administrative expenses | ||
Depreciation expense | 25,000 | |
Advertising expense | 146,000 | |
Administrative Salaries expense | 111,000 | |
Insurance Expense | 2,150 | |
Miscellaneous Expense | 10,200 | |
294,350 | ||
Net operating Income | 69,200 |
Calculation:
To prepare the T accounts, we need to include the beginning balances from the balance sheet given and then input the amounts from the transactions accordingly.
All amounts except the below are provided in the question.
Studio Overhead = $294,000 ÷ 7,000 hours = $42per hour;
8,600 hours × $42per hour = $361,200
Videos in process = 216,000 x 80% = 172,800
3.
Overapplied overhead : It is the ending balane of the T account - Studio Overhead
Studio Overhead | |||
Beg Balance | |||
b | 43,200 | 361,200 | i |
c | 88,000 | ||
d | 75,000 | ||
f | 126,000 | ||
g | 6,450 | ||
End Balance | 22,550 |
4.
Schedule of Cost of Goods Manufactured:
Inorder to prepare the Schedule of Cost of Goods Manufactured, first take take the Beginning raw materials , add the Purchase of raw materials. Then subtract the Ending raw material inventory and Indirect materials.
Then we need to add the Direct Labor and the Manufacturing overhead applied to work in process to get the Total Manufacturing costs.
Next we need to sum the Beginning videos in process inventory and subtract the Ending videos in process inventory to calculate the cost of goods manufactured
The cost of goods manufactured from this schedule prepared = $566,000 It equals to the transaction “j.”.
5.
Schedule of Cost of Goods Sold
Inorder to prepare the Schedule of Cost of Goods Sold, first we take the Beginning finished goods inventory and then add the Cost of goods manufactured to calculate the Cost of goods available for sale.
Next we need to subtract the Ending finished goods inventory to calculate the Unadjusted cost of goods sold
The unadjusted cost of goods sold = $616,000.
It agrees with transaction “k.”
Then we need to subtract the Overapplied overhead to calculate the Adjusted cost of goods sold
6. Income Statement
Inorder to prepare the Income Statement, we need to take the ending balance of sales and then deduct the Cost of Goods Sold to get the Gross Margin.
Then we need to deduct the Selling and administrative expenses like Depreciation expense, Advertising expense,Administrative Salaries expense, Insurance Expense and Miscellaneous Expense to get the Net operating Income
Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet...
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 $ 31,000 46,000 82,000 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...
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 1 Assets Current assets: Cash $ 81,000 Accounts receivable 120,000 Inventories: Raw materials (film, costumes) $ 48,000 Videos in process 21,000 Finished videos awaiting sale 99,000 168,000 Prepaid insurance 12,600 Total current assets 381,600 Studio and equipment 766,000 Less accumulated depreciation 228,000 538,000 Total assets $ 919,600 Liabilities and Stockholders'...
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...
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 1 Assets Current assets: Cash $ 79,000 Accounts receivable 118,000 Inventories: Raw materials (film, costumes) $ 46,000 Videos in process 24,000 Finished videos awaiting sale 97,000 167,000 Prepaid insurance 12,200 Total current assets 376,200 Studio and equipment 762,000 Less accumulated depreciation 226,000 536,000 Total assets $ 912,200 Liabilities and Stockholders'...
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. $ 82,000 121,000 $ 49,000 22,000 100,000 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...
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 1 Assets points Current assets: eBook Cash Accounts receivable Inventories: $71,000 110,000 Print Raw materials (film, costumes) 38,000 30,000 89,000 Videos in process Finished videos awaiting sale 157,000 10,600 348,600 Prepaid insurance Total current assets Studio and equipment 746,000 Less accumulated depreciation Total assets 218,000528,000 $876, 600 Liabilities and Stockholders'Equity...
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...
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 1 Assets Current assets: Cash $ 80,000 Accounts receivable 119,000 Inventories: Raw materials (film, costumes) $ 47,000 Videos in process 20,000 Finished videos awaiting sale 98,000 165,000 Prepaid insurance 12,400 Total current assets 376,400 Studio and equipment 764,000 Less accumulated depreciation 227,000 537,000 Total assets $ 913,400 Liabilities and Stockholders'...
(I have updated after reviewing them) 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. $ 73,000 112,000 Supreme Videos, Inc. Balance Sheet January 1 Assets Current assets: Cash Accounts receivable Inventories: Raw materials (film, costumes) $ 40,000 Videos in process 32,000 Finished videos awaiting sale 91,000 Prepaid insurance Total current assets Studio and equipment 750,000 Less accumulated depreciation 220,000 Total assets Liabilities and Stockholders'...
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. $ 63,000 102.000 Supreme Videos, Ine. Balance Sheet January 1 Assets Current assets! Cash Accounts receivable Inventories: Raw materials (film, costumes) $ 30,000 Videos in process 45.000 Finished videos awaiting sale 81,000 Prepaid insurance Total current assets Studio and equipment 730.000 Less accumulated depreciation 210.000 Total assets Liabilities and Stockholders' Equity Mccounts payable Capital stock $420,000...