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Question: star videos inc produces short musical videos for sale to...

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

Star Videos, Inc., produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1 are given below Star Videos, Inc. Balance Sheet January 1 Assets Cash Accounts receivable Inventories: $82,600 97,600 Raw materials (film, costumes) $42,800 56,600 79,800 Videos in process Finished videos awaiting sale Prepaid insurance Studio and equipment (net) Total assets Liabilities and Stockholders Equity Accounts payable Retained earnings Total liabilities and stockholders equity 179,200 10,050 548,000 $ 917,450 $188,000 729,450 $ 917,450 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:

Required 1 Required 2 Required 3Required 4 Prepare a transaction analysis that records all of the above transactions. (Amounts to be deducted should be indicated by a minus sign.) Star Videos, Inc. Transaction Analysis For the Year Ended December 31 Studio & Accounts Raw Materials Process Videos in Finished ManufacturingPrepaid Overhead Cash Equipment ne Receivable Goods Insurance Beginning balance @1/1 (a) Raw material purchases (b) Raw materials used (c) Utility costs (d) Depreciation charges (e) Advertising (f) Salaries & wages (g) Prepaid insurance (h) Miscellaneous marketing (i) Applied overhead G) Transfer completed videos to finished goods (k) Sales (1) Transfer finished goods to cost of goods sold (m) Cash collections from customers (n) Payment to suppliers S 82,600$97,600$42,80056,600 79,800 10,050 548,000$ 221,000 (259,000) 220,150 38,850 81,200 Ending balances 12/31

Studio & EquipmentAccounts Retained Earnings (net) Payable $ 548,000 188,000 729,450

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