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. $ 90,80 104,200 Star Videos, Inc. Balance Sheet January 1 Assets Cash Accounts receivable Inventories: Raw materials (film, costumes) Videos in process 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 $ 26, 420 51. eee 87.829 165.2ee 8.55 568, Bee $936, 750 $244.000 692.250 $936.758 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-houn 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, $214,000. b. Film, costumes, and other raw materials issued to production, $230,000 (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, $91,800. d. Depreciation recorded on the studio, cameras, and other equipment, $96,400. 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). $149,000. Salaries and wages paid in cash as follows: Direct labor (actors and directors) Indirect labor (carpenters to build sets, costume designers, so forth) Administrative salaries $83.52 $113, 2ee g. Prepaid Insurance expired during the year. $7,800 (70% related to production of videos, and 30% related to marketing and administrative activities). h. Miscellaneous marketing and administrative expenses incurred (on account). $9.900. 1. 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 $552,000 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 $1,110,000 and were all on account L. The total cost to produce the videos that were sold according to their job cost sheets was $596,090. m Collections from customers during the year totaled $1.060,000 n. Payments to suppliers on account during the year, S610,000 o. Underapplied or overapplied overhead $_2 Required: 1. Prepare a transaction analysis that records all of the above transactions. Calculate the ending balances at December 31 for all balance sheet accounts 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. Prepare a transaction analysis that records of the above transactions. Calculate the ending balances at December 31 for all balance sheet accounts (Amount the deducted she le indicated Ste Videos, Ine Transaction Analysis For the Year Ended December 31 Raw Materials Videos in Receivable Finished Beginning hace 1/1 0 0.000 042003 20.400 51.000 3 7.300 1 500 000 - 3 24400 1- (b) materials used te) Utility costs Depreciation charges Advertising 1 Swars & wages a) Prepaid insurance th) Miscellaneous masing (0) Applied overhead Traster completed videos to t he goods Transfer t he goods to cost of goods and Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare a 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 Required 1 Required 3 > 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 schedule of cost of goods sold for the year. Star Videos, Inc. Schedule of Cost of Goods Sold For the Year Ended December 31 Required 2 Required 4 > 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