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		$ 87,400
Accounts receivable		107,200
Inventories:
Raw materials (film, costumes)	$ 15,800
Videos in process	54,600
Finished videos awaiting sale	94,400	164,800
Prepaid insurance		11,150
Studio and equipment (net)		582,000
Total assets		$ 952,550
Liabilities and Stockholders Equity
Accounts payable		$ 231,000
Retained earnings		721,550
Total liabilities and stockholders equity		$ 952,550

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 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. Any 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, $199,000.
2. Film, costumes, and other raw materials issued to production, $207,000 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect).
3. Utility costs incurred (on account) in the production studio, $78,800.
4. Depreciation recorded on the studio, cameras, and other equipment, $114,000. 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), $179,000.
6. 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 forth)	$ 83,500
Administrative salaries	$ 112,200

1. Prepaid insurance expired during the year, $9,300 (70% related to production of videos, and 30% related to marketing and administrative activities).
2. Miscellaneous marketing and administrative expenses incurred (on account), $10,650.
3. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year.
4. Videos that cost $538,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment.
5. Sales for the year totaled $948,000 and were all on account.
6. The total cost to produce the videos that were sold according to their job cost sheets was $581,110.
7. Collections from customers during the year totaled $898,000.
8. Payments to suppliers on account during the year, $584,000.
9. 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 answers in the tabs below. Prepare a schedule of cost of goods manufactured for the year. Prepare a schedule of cost of goods sold for the year. Prepare an income statement for the year