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.

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 $($ $$40$ per camera$-$hour$)$ is based on a cost formula that estimated $$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:

a$.$ Film, costumes, and similar raw materials purchased on account, $$189,500.$

b$.$ Film, costumes, and other raw materials issued to production, $$200,000(85\%$ of this material was considered direct to the videos in production, and the other $15\%$ was considered indirect$).$

Prey.

$13$ of $13$

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c$.$ Utility costs incurred $($on account$)$ in the production studio, $$93,800.$

d$.$ Depreciation recorded on the studio, cameras, and other equipment, $$112,400.$ 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$),$ $$153,000.$

f$.$ Salaries and wages paid in cash as follows:

Direct labor $($actors and directors$)$

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

Administrative salaries

$$102,800$

$$71,500$

$$97,800$

g$.$ Prepaid insurance expired during the year, $$8,550(70\%$ related to production of videos, and $30\%$ related to marketing and administrative activities$).$

h$.$ Miscellaneous marketing and administrative expenses incurred $($on account$),$ $$11,700.$

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

j$.$ Videosthat cost $$586,000$ to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment.

k$.$ Sales for the year totaled $$998,000$ and were all on account.

I. The total cost to produce the videos that were sold according to their job cost sheets was $$632,470.$

m$.$ Collections from customers during the year totaled $$948,000.$

n$.$ Payments to suppliers on account during the year, $$538,000.$

o$.$ Underapplied or overapplied overhead $$\_?$

Required:

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

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.

Prey

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Next

Prepare a transaction analysis that records all of the above transactions. $($Amounts to be deducted should be indicated by a minus sign.$)$

$\backslash$table$[[$Star Videos, Incorporated$],[,,,$Transaction Analysis$],[,,$For the Year Ended December $31],[,,$Cash,$\backslash$table$[[$Accounts$],[$Receivable$]],$Raw Materials,$\backslash$table$[[$Videos in$],[$Process$]],\backslash$table$[[$Finished$],[$Goods$]],\backslash$table$[[$Manufacturing$],[$Overhead$]],\backslash$table$[[\backslash$table$[[$Pr$],[$Ins$]]],[$$