Star Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1 are given below. Star Videos, Inc Balance Sheet January 1 Assets $ 89,200 106,600 Cash Accounts receivable Inventories: Raw materials (film, costumes) Videos in process $13,400 47,400 80,400 Finished videos awaiting sale Prepaid insurance Studio and equipment (net) 141,200 8,350 610,000 $955,350 Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity $238,000 717,350 $955,350 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 base of 7000 camera- hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year Film, costumes, and similar raw materials purchased tion $230,500 (85% of this material was considered direct on account, $229,000. ilm costumes and other raw materials issued to to the videos in production, and the other 15% was considered indirect) c.Utility costs incurred (on account) in the production studio, $92,600. d. Depreciation recorded on the studio, cameras, and other equipment, $104,400. 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), $143,000. f. Salaries and wages paid in cash as follows: ( actors and directors) Indirect labor (carpenters to build sets, costume designers, and so Direct labor $96,000 $ 75,500 Administrative salaries $103,000 g. Prepaid insurance expired during the year, $7,450 (70% related to production of videos, and 30% related to marketing and administrative activities). h. Miscellaneous marketing and administrative expenses incurred (on account), $13,850. i. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year. j.Videos that cost $578,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment k. Sales for the year totaled $954,000 and were all on account I. The total cost to produce the videos that were sold according to their job cost sheets was $623,910. m. Collections from customers during the year totaled $904,000 n. Payments to suppliers on account during the year, $608,000. o. Underapplied or overapplied overhead $_? 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 1 Required 2 Required 3 Required 4 Prepare a transaction analysis that records all of the above transactions. (Amounts to be deducted should be indicated by a minus sign.) Star Videos, Inc. Transaction Analysis For the Year Ended December 31 Studio & Equipment (net) Finished Man ufacturing Goods Accounts Receivable Raw Materials Videos in Process Prepaid Insurance Accounts Retained Cash Overhead Payable Earnings Beginning balance $ 89,200 $ 106,600 13,400 $ 47,400 $ 80,400 $ 238,000$717,350 S 8,350 610,000 @1/1 Raw material (a) purchases (b) Raw materials used (c) Utility costs (d) Depreciation charges (e) Advertising (f Salaries wages (g) Prepaid insurance Miscellaneous (h) marketing (i) Applied overhead Transfer completed ()videos to finished goods (k) Sales Transfer finished goods (I) to cost of goods sold Cash collections from (m) customers (n) Payment to suppliers (o) Ending balances@ 12/31