Star Videos, Inc Balance Sheet January 1 Assets Cash Accounts receivable $ 82,600 97,680 Inventories: Raw materials (file, costumes) Videos in process Finished videos awaiting sale Prepaid insurance Studio and equipment (net) $42,880 56,600 79,800 10,e50 548,000 917,450 Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity $ 188,800 729,450 917,450 Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine t 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 est manufacturing overhead for an estimated allocation base of 7000 camera-hours. Any underapplied or over to cost of goods sold. The following transactions were recorded for the year a Film, costumes, and similar raw materials purchased on account. $221,000 b Film, costumes, and other raw materials issued to production, $259,000 (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, $81.200. d. Depreciation recorded on the studio, cameras, and other equipment, $93.200 Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration. e Advertising expense incurred (on account), $161,000. t Salaries and wages paid in cash as follows Direct labor (actors and directors) Indirect labor (carpenters to build sets, costume designers, and so forth) Adeinistrative salaries s 98,200 $83,500 $110,000 g Prepaid insurance expired during the year $9100 related to production of videos and 30% related to marketing and administrative activities) h Miscellaneous marketing and administrative expenses incurred (on account). $14,150 i Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year ) Videos that cost $580,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await and shipment k Sales for the year totaled $1100,000 and were all on account. l. The total cost to produce the videos that were sold according to their job cost sheets was $626.050 m Collections from customers during the year totaled $1.050000 n Payments to suppliers on account during the year $529.000 o Underapplied or overapplied overhead $...2 Required: 1 Prepare a transaction analysis that records all of the above transactions 2. Prepare a schedule of cost of goods manufactured for the year 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 1Required 2 Required 3 Required 4
