90.2K

Verified Solution

Link Copied!

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 ts Assets Current assets: Cash Accounts receivable Inventories: s 73,800 112,888 eBook Raw materials (film, costunes) $40,880 2,080 Videos in process Finished videos awaiting sale Prepaid insurance Print Total current assets Studio and equipment 11,899 359,060 75e,000 eferences Less accumulated depreciation Total assets 220809530,90 $889,000 Liabilities and Stockholders Equity Accounts payable Copital stock Retained earnings 5430,00 5179,000 280-008 718,809 $889,000 Total 1iabilities and stockholders equity 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 $250,000 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. $195.000 b. Film, costumes, and other raw materials used in production, $s 21 0 80% of this material was considered direct to the videos in

Answer & Explanation Solved by verified expert

See Answer