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 Cash Accounts receivable Inventories: $ 88,000 114,600 Raw materials (film, costumes) $20,000 51,800 97,200 Videos in process 169,000 10,750 598,000 S 980,350 Finished videos awaiting sale Prepaid insurance Studio and equipment (net) Total assets Liabilities and Stockholders Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 189,000 791,350 980,350 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 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, $189,500 b. Film, costumes, and other raw materials issued to production, $200,000(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, $93,800 d. Depreciation recorded on the studio, cameras, and other equipment, $112,400. 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), $153,000. f. Salaries and wages paid in cash as follows nc. alysis ecember 31 Studio & Finished Manufacturing Prepaid Overhead EquipmentAccountsRetained Earnings Goods Insurance Payable (net) $ 97,200 $10,750 598,00089,000791,350 Required1Required 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 & Accounts Videos in Raw MaterialsProcess Finished Manufacturing Prepaid Overhead Cash Equipment ne Receivable Goods Insurance Beginning balance 1/1 (a) Raw material purchases (b) Raw materials used (c) Utility costs (d) Depreciation charges (e) Advertising () Salaries & wages (g) Prepaid insurance (h) Miscellaneous marketing (C) Applied overhead C) Transfer completed videos to finished goods (k) Sales () Transfer finished goods to cost of goods sold (m) Cash collections from customers (n) Payment to suppliers $ 88,000 S 114,60020,00051,80097,200 S 10,750$ 598,000S Ending balances 12/31 Prepare schedule of cost of goods manufactured for the year. Star Videos, Inc. Schedule of Cost of Goods Manufactured For the Year Ended December 31 Total manufacturing costs Cost of goods manufactured Prepare a schedule of cost of goods sold for the year. Star Videos, Inc Schedule of Cost of Goods Sold For the Year Ended December 31 Prepare an income statement for the year Star Videos, Inc Income Statement For the Year Ended December 31 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 Cash Accounts receivable Inventories: $ 88,000 114,600 Raw materials (film, costumes) $20,000 51,800 97,200 Videos in process 169,000 10,750 598,000 S 980,350 Finished videos awaiting sale Prepaid insurance Studio and equipment (net) Total assets Liabilities and Stockholders Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 189,000 791,350 980,350 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 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, $189,500 b. Film, costumes, and other raw materials issued to production, $200,000(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, $93,800 d. Depreciation recorded on the studio, cameras, and other equipment, $112,400. 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), $153,000. f. Salaries and wages paid in cash as follows nc. alysis ecember 31 Studio & Finished Manufacturing Prepaid Overhead EquipmentAccountsRetained Earnings Goods Insurance Payable (net) $ 97,200 $10,750 598,00089,000791,350 Required1Required 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 & Accounts Videos in Raw MaterialsProcess Finished Manufacturing Prepaid Overhead Cash Equipment ne Receivable Goods Insurance Beginning balance 1/1 (a) Raw material purchases (b) Raw materials used (c) Utility costs (d) Depreciation charges (e) Advertising () Salaries & wages (g) Prepaid insurance (h) Miscellaneous marketing (C) Applied overhead C) Transfer completed videos to finished goods (k) Sales () Transfer finished goods to cost of goods sold (m) Cash collections from customers (n) Payment to suppliers $ 88,000 S 114,60020,00051,80097,200 S 10,750$ 598,000S Ending balances 12/31 Prepare schedule of cost of goods manufactured for the year. Star Videos, Inc. Schedule of Cost of Goods Manufactured For the Year Ended December 31 Total manufacturing costs Cost of goods manufactured Prepare a schedule of cost of goods sold for the year. Star Videos, Inc Schedule of Cost of Goods Sold For the Year Ended December 31 Prepare an income statement for the year Star Videos, Inc Income Statement For the Year Ended December 31