ZuoTi.Pro
Question

Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The companys 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 StockholdersEquity $170,600 Accounts payable Capital stock Retained earnings Total liabilities and stockholdersequity $428,000 278,000 706,000 $876, 600 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 companys predetermined overhead rate for the year is based on a cost formula that estimated $282,000 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, $193,000. b. Film, costumes, and other raw materials used in production, $208,000(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, $80,000. d. Depreciation recorded on the studio, cameras, and other equipment, $92,000. 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, $138,000. f. Costs for salaries and wages were incurred on account as follows: Direct labor (actors and directors) Indirect labor (carpenters to build sets, $ 90,000 costume designers, and so forth) Administrative salaries $ 118,000 $ 103,000 g. Prepaid insurance expired during the year, $7,800 (75% related to production of videos, and 25% related to marketing and administrative activities). h. Miscellaneous marketing and administrative expenses incurred on account, $9,400. i. Studio (manufacturing) overhead was applied to videos in production. The company used 7,500 camera-hours during the year j. Videos that cost $558,000 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 $941,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $608,000. L Collections from customers during the year totaled $858,000. m. Payments to suppliers on account during the year, $508,000; payments to employees for salaries and wages, $293,000.Req 1 and 2 Req 3 Req 4 Req 5 Req 6 Prepare a T-account for each account on the companys balance sheet and enter the beginning balances. Record the transactions directly into the T- accounts Cash Accounts Receivable Beg. Bal 71,000 858,000 Beg. Bal 941,000 293,000 End. Bal 636,000 End. Bal 941,000 Raw Materials Prepaid Insurance Beg. Bal 38,000 Beg. Bal 10,600 193,000 208,000 7,800 End. Bal 23,000 End. Bal 2,800 Videos in Process Finished Goods Beg. Bal 30,000 166,400 90,000 352,500 Beg. Bal 89,000 558,000 608,000 End. Bal 39,000 558,000 End. Bal 80,900Studio and Equipment Accumulated Depreciation Beg. Bal Beg. Bal 23,000 92,000 92,000 23,000 End. Bal End. Bal Studio Overhead Depreciation Expense Beg. Bal Beg. Bal 80,000 41,600 118,000 7,800 92,000 23,000 92,000 352,500 92,000 23,000 End. Bal End. Bal 13,100 Insurance Expense Advertising Expense Beg. Bal Beg. Bal 138,000 138,000Miscellaneous Expense Administrative Salaries Expense Beg. Bal Beg. Bal 9,400 103,000 9,400 End. Bal 103,000 Cost of Goods Sold Sales Beg. Bal Beg. Bal 608,000 941,000 End. Bal 608,000 End. Bal 941,000 Salaries & Wages Payable Accounts Payable Beg. Bal Beg. Bal 170,000 293,000 90,000 118,000 193,000 80,000 138,000 9,400 103,000 End. Bal 85,000 508,000 End. Bal 154,600Retained Earnings 278,000 Capital Stock 428,000 Beg. Bal. 706,000 508,300 Beg. Bal 428,000 End. Bal 936,300 End. BalComplete this question by entering your answers in the tabs below. Req 1 and 2Req 3 Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year? Manufacturing overhead was Req 4 Req 5 Req 6 by for the year Req 1 and 2 Req 4Prepare a schedule of cost of goods manufactured. Supreme Videos, Inc. Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured K Req 3 Req5>Prepare a schedule of cost of goods sold. Supreme Videos, Inc Schedule of Cost of Goods Sold く Req 4 Req 6>Prepare an income statement for the year. SUPREME VIDEOS, INC. Income Statement For the Year Ended December 31 Selling and administrative expenses: K Req 5 Req 6

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Question is about Supreme videos who produces short musical videos. Have asked for T accounts, Cost of goods manufactured, cost of goods sold and income statement.Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you Predetermined Overhead rate 282000/6000 Hours Part 1 and 2 47.00 Cash Sales Debit Credit Debit Credit Beginning Balance $ 71,000 m S 858,000 m $508,000 $293,000 $941,000 Ending Balance $ 128,000 Cost of Goods Sold Credit Accounts Receivable $608,000 Debit Credit S110,000 I S941,000 Beginning Balance $858,000 Depreciation Expense Credit Ending Balance S 193,000 d 92000 1/4 23,000 Raw material Debit Credit S 38,000 b 193,000 Beginning Balance $208,000 Insurance Expense Credit 780025% $ 1,950 Ending Balance $23,000 Advertising Expense Work in Process Debit Credit Debit Credit $138,000 S 30,000 S 166,400 $ 90,000 S352,500 в nnir Balance $558,000 b 208000*80% i 7500*47 Admin Salaries Expense Debit Credit $103,000 Ending Balance $80,900 Finished Goods Misc Expense Debit Credit Credit S 89,000 k $558,000 Beginning Balance $608,000 $ 9,400 Studio Overhead Ending Balance $ 39,000 Debit Credit b 208000.20% 41,6007500 47 352,500 $80,000 $ 69,000 $118,000 $5,850 Cost of Goods sold (Balance) $ 38,050 Prepaid Insurance Debit Credit d 92000 3/4 Beginning Balance 10,600 $7,800 7800*7596 Ending Balance $2,800Studio and Equipment Debit Credit Beginning Balance $ 746,000 Ending Balance $ 746,000 Acc Dep-Studio and Equipment Debit CrePart 3 Actual Overheads 41,600 Indirect Material 208000*20% Utility Cost Depreciation 92000*3/4 Indirect Labor Insurance 7800*75% Acutal Overheads Applied Overheads 7500 Hours $47 Overapplied Overhead 80,000 $ 69,000 118,000 S 5.850 314,450 A 352,500 B $ 38,050 B-A Part 4 Cost of Goods Manufactured Cost of Goods Manufactured Video in process inventory, beginning Direct materials Direct materials inventory, beginning Direct materials purchases Cost of direct materials available for use$231,000 Direct materials inventory, ending Cost of direct materials placed in production $166,400 Direct labor Factory overhead Applied Total manufacturing costs Total work in process during period Video in process inventorv, endin Cost of goods manufactured 30,000 $ 38,000 $193,000 $ -64,600 90,000 $352,500 $608,900 638,900 S -80,900 Part 5 Cost of Goods Sold Finished Videos Inventory, Beginning Add: Cost of Goods Manufactured Cost of Goods Available for Sale Less: Finished Videos inventory, endin Unadjusted Cost of Goods Sold Less: Overapplied Overhead Adjusted Cost of Goods Sold $ 89,000 $558,000 $647,000 $ -39,000 $608,000 $ 38,050 $569,950 Part 6 Income Statement 941,000 $-569,950 371,050 Sales Revenue Less: Cost of Goods Sold Gross Margin Less: Selling and Administrative Expense Depreciation Expense Insurance Expense Advertising Expense Admin Salaries Expense Misc Expense Net Income $ 23,000 $1,950 $138,000 103,000 $ 9,400 $-275,350 $ 95,700

0 1
Add a comment
Know the answer?
Add Answer to:
Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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...

    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...

    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. $ 79,000 118,000 $ 46,000 24,000 97,000 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...

    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...

    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...

    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...

    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...

    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'...

  • 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. $ 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...

  • (I have updated after reviewing them) Supreme Videos, Inc., produces short musical videos for sale to...

    (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'...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT