QUESTION 4 Not completePoints out of 42.00 Flag question Question text Service C
ID: 1171820 • Letter: Q
Question
QUESTION 4Not completePoints out of 42.00 Flag question
Question text
Service Cost Flows
Vente Marketing, Ltd., produces television advertisements for businesses that are marketing products in the western provinces of Canada. To achieve cost control, Vente Marketing uses a job cost system similar to that found in a manufacturing organization. It uses some different account titles:
Account
Replaces
Videos-in-Process
Work-in-Process
Video Supplies Inventory
Manufacturing Supplies Inventory
Cost of Videos Completed
Cost of Goods Sold
Accumulated Depreciation, Studio Assets
Accumulated Depreciation, Factory Assets
Studio Overhead
Manufacturing Overhead
Vente Marketing does not maintain Raw Materials or Finished Goods Inventory accounts. Materials, such as props needed for videos, are purchased as needed from outside sources and charged directly to Videos-in-Process and the appropriate job. Videos are delivered directly to clients upon completion. The April 1, balances were as follows:
Video Supplies
$1,300
Videos-in-Process
2,000
Studio Overhead
250
underapplied
During April, Vente Marketing completed the following production transactions:
1. Purchased video supplies costing $1,890 on account.
2. Purchased material for specific jobs costing $32,000 on account.
3. Incurred direct labor costs of $65,000 and indirect labor costs of $3,100.
4. Used production supplies costing $1,350.
5. Recorded studio depreciation of $8,500.
6. Incurred miscellaneous payables for studio overhead of $2,300.
7. Applied studio overhead at a predetermined rate of $23 per studio hour, with 520 studio hours.
8. Completed jobs costing $105,000 and delivered them directly to clients.
(a.) Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Videos Completed.
Videos-in-Process
Bal.
2,000
Answer
0
Answer
0
Answer
0
Answer
0
Answer
0
Answer
0
Answer
0
Other Payables
Answer
0
Answer
0
Answer
0
Answer
0
Cost of Videos Completed
Answer
0
Answer
0
Answer
0
Answer
0
Answer
0
Answer
0
Videos Supplies Inventory
Bal.
1,300
Answer
1,350
Answer
1,890
Answer
1,840
Studio Overhead
Bal.
250
Answer
11,960
Answer
2,300
Answer
0
Answer
3,100
Answer
0
Answer
8,500
Answer
2,190
Answer
14,150
Answer
14,150
Accounts Payable
Answer
0
Answer
0
Answer
0
Answer
0
Wages Payable
Answer
0
Answer
0
Answer
0
Answer
0
Accumulated Depreciation-Studio Assets
Answer
0
Answer
0
Answer
0
Answer
0
(b.) Calculate the cost incurred as of the end of Apirl for the incompete jobs still in process.
$
Answer
0
Account
Replaces
Videos-in-Process
Work-in-Process
Video Supplies Inventory
Manufacturing Supplies Inventory
Cost of Videos Completed
Cost of Goods Sold
Accumulated Depreciation, Studio Assets
Accumulated Depreciation, Factory Assets
QUESTION 4 Not complete Points out of 42.00 Flag question Service Cost Flows Vente Marketing, Ltd., produces television advertisements for businesses that are marketing products in the western provinces of Canada. To achieve cost control, Vente Marketing uses a job cost system similar to that found in a manufacturing organization. It uses some different account titles: Account Replaces Videos-in-Process Video Supplies Inventory Cost of Videos Completed Accumulated Depreciation, Studio Assets Accumulated Depreciation, Factory Assets Studio Overhead Vente Marketing does not maintain Raw Materials or Finished Goods Inventory accounts. Materials, such as props needed for videos, are purchased as needed from outside sources and charged directly to Videos-in-Process and the approprlate job. Videos are delvered directly to clients upon completion. The April 1, balances were as follows: Video Supplies $1,300 Videos-In-Process 2,000 Studio Overhead Work-in-Process Manufacturing Supplies Inventory Cost of Goods Sold Manufacturing Overhead 250 underapplied During April, Vente Marketing completed the following production transactions: 1. Purchased video supplies costing $1,890 on account. 2. Purchased material for specific jobs costing $32,000 on account. 3. Incurred direct labor costs of $65,000 and indirect labor costs of $3,100 4. Used production supplies costing $1,350 5. Recorded studio depreciation of $8,500. 6. Incurred miscellaneous payables for studio overhead of $2,300. 7. Applied studio overhead at a predetermined rate of $23 per studio hour, with 520 studio hours. 8. Completed jobs costing $105,000 and dellvered them directly to clients. (a.) Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Videos Completed.Explanation / Answer
(b) The cost incurred as of the end of april for the incomplete jobs still in process = $5960 .
1) T-Accounts: DEBIT AMOUNT $ CREDIT AMOUNT $ Videos in Process a/c: OB 2000 COVC 105000 MATERIAL 32000 CB 5960 DL 65000 S O/H 11960 TOTAL 110960 TOTAL 110960 Other Payables a/c MISCEL 2300 Cost of Videos Completed a/c: Videos in Process 105000 Wages Payable a/c: CB 68100 DL 65000 IDL 3100