E-18-27 Service Cost Flows Vente Marketing, Ltd. producestelevision advertisements for businesses that are marketingproducts in the western provinces of Canada. To achieve costcontrol, Vente Marketing uses a job cost system similar to thatfound in a manufacturing organization. It uses some differentaccount titles: Account Videos in Process Video Supplies InventoryCost of Videos Completed Accumulated Depreciation, Studio AssetsStudio Overhead Replaces Work in Process Manufacturing SuppliesInventory Cost of Goods Sold Accumulated Depreciation, FactoryAssets Manufacturing Overhead Vente Marketing does not maintain RawMaterials or Finished Goods Inventory accounts. Materials, such asprops needed for videos, are purchased as needed from outsidesources and charged directly to Videos in Process and theappropriate job. Videos are delivered directly to clients uponcompletion. The April 1, balances were as follows: Video Supplies$1,300 Videos in Process 2,000 Studio Overhead 250 underappliedDuring April, Vente Marketing completed the following productiontransactions: 1. Purchased video supplies costing $1,675 onaccount. 2. Purchased materials for specific jobs costing $27,000on account. 3. Incurred direct labor costs of $65,000 and indirectlabor costs of $3,100. 4. Used production supplies costing $850. 5.Recorded studio depreciation of $3,500. 6. Incurred miscellaneouspayables for studio overhead of $1,800. 7. Applied studio overheadat a predeterimined rate of $18 per studio hour, with 520 studiohours. 8. Completed jobs costing $100,000 and delivered themdirectly to clients. Required a. Prepare “T” accounts showing flowof costs through all service accounts and Cost of Videos Completed.b. Calculate the cost incurred as of the end of April for theincomplete jobs still in process.