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

Star Videos, Incorporated
Balance Sheet
January 1
Assets
Cash		$ 83,400
Accounts receivable		114,600
Inventories:
Raw materials (film, costumes)	$ 33,600
Videos in process	58,600
Finished videos awaiting sale	97,400	189,600
Prepaid insurance		9,100
Studio and equipment (net)		582,000
Total assets		$ 978,700
Liabilities and Stockholders Equity
Accounts payable		$ 219,000
Retained earnings		759,700
Total liabilities and stockholders equity		$ 978,700

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 companys 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:

1. Film, costumes, and similar raw materials purchased on account, $210,000.
2. Film, costumes, and other raw materials issued to production, $234,500 (85% of this material was direct to the videos in production, and the other 15% was indirect).
3. Utility costs incurred (on account) in the production studio, $78,400.
4. Depreciation on the studio, cameras, and other equipment, $86,800.Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration.
5. Advertising expense incurred (on account), $154,500.
6. Salaries and wages paid in cash as follows:

Direct labor (actors and directors)	$ 102,200
Indirect labor (carpenters to build sets, costume designers, and so forth)	$ 89,500
Administrative salaries	$ 114,000

1. Prepaid insurance expired, $8,700 (70% related to production of videos, and 30% related to marketing and administrative activities).
2. Miscellaneous marketing and administrative expenses incurred (on account), $11,450.
3. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity.
4. Videos costing $554,000 were transferred to the finished videos warehouse.
5. Sales for the year totaled $1,026,000 and were all on account.
6. The total cost to produce the videos that were sold was $598,230.
7. Collections from customers totaled $976,000.
8. Payments to suppliers on account, $592,000.
9. Underapplied or overapplied overhead $__?question mark__.

Required:

1. Prepare a transaction analysis that records all of the above transactions.
2. Prepare a schedule of cost of goods manufactured.
3. Prepare a schedule of cost of goods sold.
4. Prepare an income statement.