Question

Required information Problem 10-27 Schedule of cost of goods manufactured and sold LO 10-3 The following information applies to the questions displayed below. Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash $677000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transaction:s 1. Paid $29,000 of research and development costs 2. Paid $57,000 for raw materials that will be used to make eBook readers 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers 4. Paid $67,000 for salaries of selling and administrative employees 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative office 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) useful life]. Specifically, ($159,000 $19,000) 7 $20,000 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) useful life). Specifically, ($163,000 $30,000)7 $19,000 10. Paid $49,000 for rent and utility costs on the manufacturing facility 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost) 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods 13. Sold 960 eBook readers for $435,000 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13

Answer 1

Antioch co mpany makes eBooK Beadeas ANTLOCH cOmPANY chedule of cost of Eon the Near and ed Decombe 3l 20s Beginning mw ma teial anventoy chases Raw martoial ovailable F12200O 30000) g 2000 aio00 냐9600 lEmdng Rauw mattrial nventoy Raw mateial Usec a bor oveshea.d oralmanufe ctuing cost 2 32000O 3 3000 Endingwoak in Porress anventoa castof goods manufachued Beginning finished Gooas inventoy Coods available $293000 C13q 4oo) ding nished Cioods invento Cest of go0d sold 153600 nding Raco ma teua! thvento N- 5 i 22000- s g2000 5 30000 nding oO F 1100O _s_2q3C00.-1153600 S 139400 fnding finished. С ООд-ro ento»

ANIIOCH COmPANY C2 income Statement For the year fnded Deo 31 2018 sales Revenue $し13 5000 esss cost of good solc boss maogin 6 281400 CR 10,000 ess sellinge neimin Expense 1) Sellinge Admin. E xeense F2a0 61000 t f 20000 210000

C3 AN T CCH COMPANY Balanco sheot ASof Decl 2018 +Assets Cash 422000 Raw mateaia) workェn process ェnventary finished Goods office-furniture (O 139400 139000 ( $159000- f 200c0) $ 391400 Stockhode's equity common stock Retained Earning(-(F2320co + Stigoo) 30 3 냐 OO 485000 L5422000