Supreme Videos, Inc., produces short musical videos for sale
Supreme Movies, Inc., produces quick musical movies on the market to shops. The company’s steadiness sheet accounts as of January 1, the start of its fiscal 12 months, are given on the next web">As a result of the movies differ in size and in complexity of manufacturing, the corporate makes use of a job- order costing system to find out the price of every video produced. Studio (manufacturing) overhead is charged to movies on the premise of camera-hours of exercise. At the start of the 12 months, the corporate estimated that it might work 7,000 camera-hours and incur $280,000 in studio overhead price. The next transactions have been recorded for the 12 months:a. Movie, costumes, and comparable uncooked supplies bought on account, $185,000.b. Movie, costumes, and different uncooked supplies issued to manufacturing, $200,000 (85% of this materials was thought-about direct to the movies in manufacturing, and the opposite 15% was thought-about oblique).c. Utility prices incurred within the manufacturing studio, $72,000.d. Depreciation recorded on the studio, cameras, and different gear, $84,000. Three-fourths of this depreciation associated to precise manufacturing of the movies, and the rest associated to gear utilized in advertising and marketing and administration.e. Promoting expense incurred $130,000.f. Prices for salaries and wages have been incurred as">g. Pay as you go insurance coverage expired throughout the 12 months, $7,000 (80% associated to manufacturing of movies, and 20% associated to advertising and marketing and administrative actions).h. Miscellaneous advertising and marketing and administrative bills incurred, $eight,600.i. Studio (manufacturing) overhead was utilized to movies in manufacturing. The corporate recorded 7,250 camera-hours of exercise throughout the 12 months.j. Movies that price $550,000 to supply in response to their job price sheets have been transferred to the completed movies warehouse to await sale and cargo.ok. Gross sales for the 12 months totaled $925,000 and have been all on account. The full price to supply these movies in response to their job price sheets was $600,000.l. Collections from clients throughout the 12 months totaled $850,000.m. Funds to suppliers on account throughout the 12 months, $500,000; funds to workers for salaries and wages, $285,000.Required:1. Put together a T-account for every account on the company’s steadiness sheet and enter the start balances.2. Document the transactions immediately into the T-accounts. Put together new T-accounts as wanted. Key your entries to the letters (a) by (m) above. Compute the ending steadiness in every account.three. Is the Studio (manufacturing) Overhead account underapplied or overapplied for the 12 months? Make an entry within the T-accounts to shut any steadiness within the Studio Overhead account to Value of Items Bought.four. Put together an earnings assertion for the 12 months. (Don't put together a schedule of price of products manufactured; the entire info wanted for the earnings assertion is offered in theT-accounts.)