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Problem 3-17 Cost Flows; T-Accounts; Income Statement [LO3-2, LO3-3, LO3-4] 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 Current assets: Cash Accounts receivable Inventories: $ 73,000 112,000 Raw materials (film, costumes) $ 40,000 32,000 91,000 Videos in process Finished videos awaiting sale 163,000 11,000 359,000 Prepaid insurance Total current assets Studio and equipment 750,000 220,000 Less accumulated depreciation Total assets 530,000 $889,000 Liabilities and Stockholders Equity $179,000 Accounts payable Capital stock Retained earnings Total liabilities and stockholders equity $430,000 280,000 710,000 $889,000Required: 1. Prepare a T-account for each account on the companys 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? By how much? 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.Studio and Equipment Accumulated Depreciation Beg. Bal Beg. Bal. End. Bal End. Bal. Studio Overhead Depreciation Expense Beg. Bal. Beg. Bal End. Bal End. Bal. Insurance Expense Advertising Expense Beg. Bal Beg. Bal Miscellaneous Expense Administrative Salaries Expense Beg. Bal Beg. Bal End. BalCost of Goods Sold Sales Beg. Bal Beg. Bal. End. Bal. End. Bal. Salaries & Wages Payable Accounts Payable Beg. Bal Beg. Bal. End. Bal. End. Bal Retained Earnings Capital Stock Beg. Bal Beg. Bal. End. Bal. End. Bal.Is the Studio (manufacturing) Overhead account underapplied or overapplied for the year. by Manufacturing overhead was for the year.Prepare a schedule of cost of goods sold. Supreme Videos, Inc. Schedule of Cost of Goods SoldPrepare an income statement for the year. SUPREME VIDEOS, INC. Income Statement For the Year Ended December 31 Selling and administrative expenses:

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Question is about job costing for Star video wherein COGS COGM Income statement has been asked

| 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 $250000/5000 Hours Part 1 and 2 S0.00 Cash Debit Credit Debit Credit 73,000 m 860,000 m 510,000 $301,000 945,000 Ending Balance 122,000 Cost of Goods Sold Debit Credit Accounts Receivable 610,000 Debit Credit $ 112,000 1 945,000 Beginning Balance $860,000 Debit Ending Dalance 197,000 d 94000 1/4 23,500 Raw material Debit Credit 40,000 b 195,000 $210,000 Insurance Expense Debit Credit 9000.25% 2,000 Ending Balance $25,000 Advertising Expense Work in Pracess Debit Credit Debit Credit 140,000 32,000 1G8,000 92,000 350,000 b 210000*80% i 7000 50 Admin Salaries E Debit Credit $105,000 Ending Balance 82,000 Finished Goods Misc Expense Debit inning Balance 91,000 k 5610,000 9,600 $ 5G0,000 Studio overhead Ending Balance 541,000 b 210000*20% 42,000 i 7000 50 350,000 Prepaid insurance $ 82,000 70,500 120,000 S 6,000 Cost of Goods sold (Balance29,500 Debit Credit d 94000 3/4 inning Balance OD0 д 8000+75% Ending Balance 3,000 Capital Stock Studio and Debit Debit Credit Beginning Balae 430,000 Beginning Balance $ 750,000Part 3 Actual Overheads: Indirect Material 210000*20% Utility Cost Depreciation 94000 3/4 Indirect Labor Insurance 8000*75% Acutal Overheads Applied Overheads 7000 Hours S50 Overapplied Overhead 42,000 82,000 $70,500 S120,000 $6,000 320,500 A $ 350,000 B $29,500 B-A Part 4 Cost of Goods Manufactured Cost of Goods Manufactured 32,000 Video in process inventory, beginning Direct materials Direct materials inventory, beginning Direct materials purchases Cost of direct materials available for use Direct materials inventory, ending Cost of direct materials placed in production Direct labor Factory overhead Applied Total manufacturing costs Total work in process during period Video in process inventory, endin Cost of goods manufactured $40,000 $195,000 $ 235,000 $67,000 $ $ 92,000 $ 350,000 168,000 $610,000 $ 642,000 $-82,000 $560,000 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 91,000 $ 560,000 $651,000 $41,000 610,000 $29,500 $580,500 Part 6 Income Statement Sales Revenue Less: Cost of Goods Sold Gross Margin Less: Selling and Administrative Expense Depreciation Expense Insurance Expense Advertising Expense Admin Salaries Expense Misc Ex Net Income $ 945,000 $-580,500 $364,500 23,500 $2,000 $140,000 $105,000 $9,600$-280,100 84,400

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