Accounting Assignment | College Homework Help
March 17th, 2020
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. $70,000 109,000 Supreme Videos, Inc. Balance Sheet January 1 Assets Current Assets Cash Recounts receivable Inventories Raw materials (film, costumes) $ 37,000 Videos in procOSS 52,000 Finished videos awaiting sale 88.000 Prepaid insurance Total current sta Studio and equipment 700.000 Less accumulated depreciation 217.000 Total assets Liabilities and Stockholders’ Equity Accounts payable Capital stock $427,000 Retained earnings 277,000 Total liabilities and stockholders’ equity 177.000 10.400 366,400 527,000 $ 3,400 $189.400 nces 704,000 $893.400 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 $240,000 in manufacturing overhead for an estimated allocation base of 5,000 camera-hours. The following transactions occurred during the year a. Film, costumes, and similar raw materials purchased on account, $192,000. b. Film, costumes, and other raw materials used in production, $207.000 (80% of this material was considered direct to the videos in production, and the other 20% was considered indirect). Utility costs incurred on account in the production studio, $79,000. d. Depreciation recorded on the studio, camera, and other equipment, $91,000. 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, $137,000. 1. Costs for salaries and wages were incurred on account as follows: $ 99,000 Direct laborators and directora) Indirect labor carpenters to build sets, costume designers, and so forth) ministrative salaries $ 117,000 102,000 g. Prepaid Insurance expired during the year, $7700 (75% related to production of videos, and 25% related to marketing and administrative activities), h. Miscellaneous marketing and administrative expenses incurred on account, $9,300.
L Studio (manufacturing) overhead was applied to videos in production. The company used 7,000 camera-hours during the year. Videos that cost $557,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to wait sale and shipment. L Studio (manufacturing) overhead was applied to videos in production. The company used 7,000 camera-hours during the year. Videos that cost $557,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to wait sale and shipment. k. Sales for the year totaled $939,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $607,000. L Collections from customers during the year totaled $857,000. m. Payments to suppliers on account during the year, $507,000; payments to employees for salaries and wages, $292,000. 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 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? 4. Prepare a schedule of cost of goods manufactured 5. Prepare a schedule of cost of goods sold. 6. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Reg 5 Reg 6 Prepare a T-account for each account on the company’s balance sheet and enter the beginning balances. Record the transactions directly into the T BCCDunts. Accounts Receivable Beg Bal Beg Bal Raw Materials Prepaid Insurance Beg Bal End Bal End. Bal Videos in Process Finished Goods Beg Bal. Bog. Bal Accumulated Depreciation Studio and Equipment Beg. Bal. Beg Bal. End. Bal. End, Bal Studio Overhead Depreciation Expense Beg Bal Beg Bal End. Bal. End, Bal Insurance Expense Advertising Expense Bal Miscellaneous Expense Administrative Salaries Expense Beg. Bal. End. Bal. Cost of Goods Sold Sales Bog. Bal. Beg.Bal. End, Bal End, Bal. Salaries & Wages Payable Accounts Payablo Beg. Bal. Beg. Bal. Salaries & Wages Payable Accounts Payable Beg. Bal. Beg Ba Retained Earnings Capital Stock Beg. Bal. Beg. Bal. End, Bal. End. Bal. Rega >Get Accounting Homework Help today