Problem 3A-5 Transaction Analysis (LO3-5) Star Videos. Inc, produces shon musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1 are $ 90,200 95,200 given below. stay Videos, Inc. Balance Sheet January 1 Assets Cash Accounts receivable Tnventories: Raw saterials (film, costumes) Videos in process Finished videos waiting sale Prepaid insurance Studio and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity $20,200 56,800 81,800 158,880 12,780 542.000 5 899,980 $ 156,000 743,930 $199.00 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. The company's predetermined overhead rate for the year ($40 per camera hour) is based on a cost formula that estimated $280,000 in manufacturing overhead for an estimated allocation bute of 7000 comera hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year a. Fim, costumes, and similar raw materials purchased on account, $193,500 b. Fim, costumes, and other raw materials issued to production $207,500 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect) Utility costs incurred on account in the production studio. $91800 Panthi men har man tol Thaneurthe of the instanta yuous lidhuidciuieu lui ule yedi. 3. Prepare a schedule of cost of goods sold for the year. 4. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare an income statement for the year. Star Videos, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 0 0