16,500 camera hours × $90 per camera-hour = $1,485,000.
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Solutions Manual, Chapter 3 107
Problem 3-25 (continued)
The entry to record this application follows:
Films in Process ... 1,485,000
Production Overhead... 1,485,000
j. Finished Films ... 3,400,000
Films in Process ... 3,400,000
k. Accounts Receivable... 6,000,000
Sales Revenue ... 6,000,000
Cost of Films Sold ... 4,000,000
Finished Films... 4,000,000
l. Cash ... 5,400,000
Accounts Receivable... 5,400,000
m. Accounts Payable ... 2,500,000
Salaries and Wages Payable... 2,200,000
Cash ... 4,700,000
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