Question

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, $675,000; Raw Materials Inventory, $63,000: Work in Process Inventory, $32,000; Finished Goods Inventory, $49,000; Common Stock, $598,000; and Retained Earnings, $221,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions 1. Paid $29,000 of research and development costs. 2. Paid $61,000 for raw materials that will be used to make eBook readers. 3. Placed $84,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $71,000 for salaries of selling and administrative employees 5. Paid $104,000 for wages of production workers. 6. Paid $98,000 to purchase equipment used in selling and administrative offices 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $18,000 salvage value and a eight-year life. The amount of depreciation is computed as (Cost-salvage-useful life). Specifically, ($98,000 $18,000)+8 $10,000. Paid $128,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $20,000 salvage value and a nine-year life. The amount of depreciation is computed as (Cost - salvage)+ useful life). Specifically. ($128,000-$20,000) 9-$12,000. 10. Paid $54,000 for rent and utility costs on the manufacturing facility 11. Paid $70,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of 12. Completed and transferred eBook readers that had total cost of $244,000 from work in process inventory to 13. Sold 970 eBook readers for $438,000 warehouse personnel, and other general storage cost). finished goods 14. It cost Antioch $203,700 to make the eBook readers sold in Event 13.

Answer 1

Schedule of cost of goods mfr & sold Income statement Balance sheet Sales 61,000Cost of goods sold Beginning raw material invento Purchases Raw materials available Ending raw materials invento Raw materials used Labor Overhead (12000+54000 Total manufacturing costs Beginning WIP Ending WIP Cost of goods manufac Beginning Finished Goods avaialable Ending Finished goods Cost of goods sold 63,000 438,000 203,700 29,000 71,000 10,000 70,000 54,300 Assets Cash Raw materials WIP Finished goods Office equipment Mfr. equipment Total assets 498,000 40,000 42,000 89,300 88,000 116,000 873300 124,000 40,000 84,000 104,000 66,000 254,000 32,000 42,000 244,000 49,000 293,000 89,300 203,700 Research & dev Selling & Admn Depriciaton rental of warehouse Net income Stockholders equit Common stock Retained earnin total equit ured 598,000 275,300 873300