d . ?Depreciation on the studio, cameras, and other equipment, $ 8 4 , 0 0 0
Question:
d ?Depreciation on the studio, cameras, and other equipment, $ ?Threefourths of this depreciation related to production of the
videos, and the remainder related to equipment used in marketing and administration.
e ?Advertising expense incurred, $
f ?Costs for salaries and wages were incurred as follows:
g ?Prepaid insurance expired during the year, $ ?related to production of videos, and ?related to marketing and administrative
activities
h ?Miscellaneous marketing and administrative expenses incurred, $
i ?Studio manufacturing ?overhead was applied to videos in production. The company used ?camerahours during the year.
j ?Videos costing $ ?to produce were transferred to the finished videos warehouse.
k ?Sales for the year totaled $ ?and were all on account. The total cost to produce these videos was $
Collections from customers during the year, $
m ?Payments to suppliers on account during the year, $; payments to employees for salaries and wages, $
Required:
Prepare a Taccount for each account on the company's balance sheet and enter the beginning balances.
Record the transactions in the Taccounts. Prepare new Taccounts as needed. Key your entries to the letters a ?through m ?above.
Compute the ending balance in each account.
Is the Studio manufacturing ?Overhead account underapplied or overapplied? Make an entry in the Taccounts to close the Studio
Overhead account to Cost of Goods Sold.
Prepare a schedule of cost of goods manufactured. If done correctly, the cost of goods manufactured should agree with which of the
above transactions?
Prepare a schedule of cost of goods sold. If done correctly, the unadjusted cost of goods sold should agree with which of the above
transactions?
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer