please do required 1 and 2

Problem 3-17 (Algo) Cost Flows; T-Accounts; Income Statement [LO3-2, LO3-3, LO3-4) Supreme Videos, Incorporated, produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1, are given below. $76,000 115,000 Supreme Videos, Incorporated Balance Sheet January 1 Assets Current sets sh Accounts receivable Inventarios: materials (film, costumes) Videos in process Viniched videos awaiting sale Prepaid insurance Yotal current assets S and opeent Les accumulated depreciation Totes Liabilities and Stockholders' Equity Accounts payable Capital stock Retained earnings Total liabilities and stockholdere equity $ 45,000 21,000 94,000 158,000 116 160,000 750,000 1223,000 53,000 1893,600 $ 503,000 20.000 $10.00 785.000 5 393,600 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 $200,000 in manufacturing overhead for an estimated allocation base of 4,000 camera hours. The following transactions occurred during the year a. Film, costumes, and similar raw materials purchased on account, $198,000. b. Film, costumes, and other raw materials used in production, $213,000 (80% of this material was considered direct to the videos in production, and the other 20% was considered Indirect). c. Utility costs incurred in the production studio: $85,000. d. Depreciation recorded on the studio, cameras, and other equipment. $97,000. 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, $143,000. Costs for salaries and wages were incurred as follows: $ 95,000 Direct labor (actors and directors) Indirect labor (carpenters to build sets, costume designers, and so forth) Administrative salaries $ 123,000 $ 108,000 g. Prepaid insurance expired during the year. $8.300 (75% related to production of videos, and 25% related to marketing and administrative activities). h. Miscellaneous marketing and administrative expenses incurred, $9.900. Studio (manufacturing) overhead was applied to videos in production. The company used 6,800 camera-hours during the year. 1. Videos that cost $563,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment k. Sales for the year totaled $951,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $613,000. Collections from customers during the year totaled $863.000 m. Payments to suppliers on account during the year. $513,000, payments to employees for salaries and wages. $320.000 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 to through m) above 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? 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. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Prepare a account for each account on the company's balance sheet and enter the beginning balances. Record the transactions directly into the T-accounts Cash Accounts Receivable Debit Credit Credit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Raw Materials Prepaid Insurance Debat Credit Credit Beginning Balance Debit Begening Balance Ending Endege Videos in Process Finished Goods Credit Begge bebit Beginning Banco Credit Endang wane Ending Balance Ending Balance Studio and Equipment Debit Credit Accumulated Depreciation Debit Beginning Balance Credit Beginning Balance Ending Balance Ending Bence Studio Overhead Depreciation Expense Credit Credit Debit Beginning Banco Debit Beginning Balance Endng bakice Englance Advertising Expense Insurance Expense Advertising Expense Debit Credit Credit Debit Beginning Balance Beginning Balance Miscellaneous Expense Debit Credit Administrative Salaries Expense Debat Credit Beginning Balance Beginning Balance Ending Balance Cont of Goods Sold Sales Debit Credit Credit Debit Beginning Balance Beginning Balance Enong Balance Ending Balance Salaries & Wages Payable Det Accounts Payable Credit Debit Crec Ending Balance Ending Balance Accounts Payable Salaries & Wages Payable Debit Credit Credit Debit Beginning Balance Boginning Balance Ending Balance Ending Balance Retained Earnings Capital Stock Debut Credit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Ren Req3 >