Ch3 HWK - Supreme Videos Inc Balance Sheet January 1 Assets...

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Supreme Videos, Inc. Balance Sheet January 1 Assets Current assets: Cash $63,000 Accounts receivable 102,000 Inventories: Raw materials(film, costumes) $30,000 Videos in process 45,000 Finished videos awaiting sale 81,000 156,000 Prepaid insurance 9,000 Total current assets 330,000 Studio and equipment 730,000 Less accumulated depreciation 210,000 520,000 Total assets $850,000 Liabilities and Stockholders' Equity Accounts payable $160,000 Capital stock $420,000 Retained earnings 270,000 690,000 Total liabilities and stockholders' equity $850,000 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. At the beginning of the year, the company estimated that it would work 7,000 camera-hours and incur $280,000 in studio overhead cost. The following transactions were recorded for the year:
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Ch3 HWK - Supreme Videos Inc Balance Sheet January 1 Assets...

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