Reference no: EM132515294

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 $1,675 on account.

2. Purchased materials for specific jobs costing $27,000 on account.

3. Incurred direct labor costs of $65,000 and indirect labor costs of $3,100.

4. Used production supplies costing $850

5. Recorded studio depreciation of $3,500.

6. Incurred miscellaneous payables for studio overhead of $1,800.

7. Applied studio overhead at a predetermined rate of $18 per studio hour, with 520 studio hours.

8. Completed jobs costing $100,000 and delivered them directly to clients.

Required

Question a. Prepare "T" accounts showing the flow of costs through all service accounts and Cost of Videos Completed.

Question b. Calculate the cost incurred as of the end of April for the incomplete jobs still in process