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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
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 $ 81,800 Accounts receivable 104,400 Inventories: Raw materials (film, costumes) $ 17,200 Videos in process 57,400 Finished videos awaiting sale 85,800 160,400 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 in complexity of production, the company uses a job-order costing system to determine
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