Star Videos, Incorporated, produces short musical videos for sale to retail outlets. The company$$s balance sheet accounts as of January $1$ are given below.

Star Videos, Incorporated

Balance Sheet

January $1$

Assets

Cash $ $81,800$

Accounts receivable $104,400$

Inventories:

Raw materials $($film$,$ costumes$)$ $ $17,200$

Videos in process $57,400$

Finished videos awaiting sale $85,800160,400$

Prepaid insurance $12,650$

Studio and equipment $($net$)588,000$

Total assets $ $947,250$

Liabilities and Stockholders$$ Equity

Accounts payable $ $203,000$

Retained earnings $744,250$

Total liabilities and stockholders$$ equity $ $947,250$

Because the videos differ in length and 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 based on 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. 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 on account, $$195,500.$

Film, costumes, and other raw materials issued to production, $$209,500(85\%$ of this material was direct to the videos in production, and the other $15\%$ was indirect$).$

Utility costs incurred $($on account$)$ in the production studio, $$85,800.$

Depreciation on the studio, cameras, and other equipment, $$106,000.$ Three$-$fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration.

Advertising expense incurred $($on account$),$ $$175,000.$

Salaries and wages paid in cash as follows:

Direct labor $($actors and directors$)$ $ $89,200$

Indirect labor $($carpenters to build sets, costume designers, and so forth$)$ $ $82,500$

Administrative salaries $ $112,800$

Prepaid insurance expired, $$9,950(70\%$ related to production of videos, and $30\%$ related to marketing and administrative activities$).$

Miscellaneous marketing and administrative expenses incurred $($on account$),$ $$10,350.$

Studio $($manufacturing$)$ overhead was applied to videos in production. The company recorded $7,250$ camera$-$hours of activity.

Videos costing $$566,000$ were transferred to the finished videos warehouse.

Sales for the year totaled $$1,000,000$ and were all on account.

The total cost to produce the videos that were sold was $$611,070.$

Collections from customers totaled $$950,000.$

Payments to suppliers on account, $$556,000.$

Underapplied or overapplied overhead $$\_\_?$question mark$\_\_.$

Required:

Prepare a transaction analysis that records all of the above transactions.

Prepare a schedule of cost of goods manufactured.

Prepare a schedule of cost of goods sold.

Prepare an income statement