Star Videos, Inc., produces short musical videos for sale to real outlets. The company's balance sheet accounts as of January 1 are given below. Star Videos, Ine. Balance Sheet January 1 Assets Cash $ 74,600 Accounts receivable 115,400 Inventoriest Raw materials (sim, costumes) $10,000 Videos in process 49,000 Finished videos awaiting sale 88,600 147,600 Prepaid insurance 8,200 Studio and equipment (net) 588,000 Total assets $933, 800 Liabilities and Stockholders' Equity Accounts payable $244,000 Retained earnings 669,800 Total liabilities and $933,800 stockholders' equity Because the videos differ in length and in complexity of production, the company uses a job-order dosting 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 7,000 camera- hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year: a. Film, costumes, and similar raw materials purchased on account, $210.500 b. Film, costumes, and other raw materials issued to production, $215,500 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect) c. Utility costs incurred (on account in the production studio. $94.800 d. Depreciation recorded on the studio, cameras, and other equipment, $85.200. 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. 5174,000. Salaries and wages paid in cash as follows: Direct labor (actors and directors) $ 91,200 Indirect labor (carpenters to build sets, costume designers, and so $ 91,500 forth) Adeinistrative salaries $ 108,800 9. Prepaid insurance expired during the year, 57,300 (70% related to production of videos, and 30% related to marketing and administrative activities). Miscellaneous marketing and administrative expenses incurred (on account. $13,550 L Studio (manufacturing) overhead was applied to videos in production. The company recorded 2250 camera hours of activity during the year Videos that cost $518,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to awalt sale and shipment k Sales for the year totaled $426,000 and were all on account The total cost to produce the videos that were sold according to their job cost sheets was 552.710 m. Colections from customers during the year totaled $1076.000. n. Payments to suppliers on account during the vear, $605,000 h. Miscellaneous marketing and administrative expenses incurred on account. $13,550. L Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera hours of activity during the year Videos that cost $518,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to wait sale and shipment. k. Sales for the year totaled $1126,000 and were all on account The total cost to produce the videos that were sold according to their job cost sheets was $559,710 m. Collections from customers during the year totaled $1.076,000 n. Payments to suppliers on account during the year $605,000 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 ers the tabs below Required Required Required Required 5 Prepare a transaction analysis that records the above transactions. (Amounts to be deducted should be indicated by a minus sign) Star Videos. Ing. Transaction Analysis For the Year Ended December 31 Accounts Raw Videos in Finished Manufacturinrepaid Studio Accounts Retained Cash Equipment Receivable Materials Process Goods Overhead Insurance Payable Earnings (net) Beginning balance @1/1 $ 74,600 $ 115,400 $ 10,000 $ 49,000 $ $ 244,000 $ 689,800 (Dj Raw material purchases b Raw materials used (c Ulity costs (dj Depreciation charges Advertising Salaries & wages ( Prepaid insurance Miscellaneous marketing C) Applied overhead Transfer completed videos to finished goods (k) Sales Transfer finished goods to cost goods sold (mCash collections from customers (n Payment to suppliers of Ending balances @ 12/31 Required 2 > TUTTI IIIIIIIII 8 TILLITI TIL LLLLLLLLL TILL TUTTI IIIIIIIIII TITUT ITIL IT TILL LLLLLLLLLLLL LLLLLLLL IIIIIIIIIIIII - TUTTI 8 LITTLULU APROPORREO TILLIT IIIIII LIITTO LLLLLLLLLLL U TI LU III 1 1