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, $666,000: Raw Materials Inventory. $55.000; Work in Process Inventory. $27,000: Finished Goods Inventory. $62.000; Common Stock. $598,000; and Retained Earnings. $212,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions 1. Paid $28,000 of research and development costs. 2. Pald $51,000 for raw materials that will be used to make eBook readers. 3. Placed $99,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $66,000 for salaries of selling and administrative employees. 5. Paid $96,000 for wages of production workers. 6. Paid $112,000 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 $12.000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost-salvage) - useful life) Specifically. ($112,000 - $12,000) + 5 = $20,000. 8. Paid $107.000 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. ($107.000 - $30,000) : 7 = $11,000. 10. Paid $64,000 for rent and utility costs on the manufacturing facility. 11. Paid $72,000 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 $247,000 from work in process inventory to finished goods. 13. Sold 830 eBook readers for $432,000. 14. It cost Antioch $166,000 to make the eBook readers sold in Event 13.

Answer 1

X fic c-1 с ANTIOCH COMPANY income statement for the year ended December 31, 2018 sales $432,000 cost of goods sold $166,000 gross profit $266,000 selling and administrative expenses $114,000 net income $152,000 ANTIOCH COMPANY statement of cost of goods manufactured for the year ended December 31, 2018 beginning raw material inventory $55,000 purchases $51,000 raw material available $106,000 ending raw material inventory -$7,000 raw materials used $99,000 labor $96,000 overhead $147,000 total manufacturing costs $342,000 beginning work in progress inventory $27,000 total work in progress inventory $369,000 ending work in progress inventory -$122,000 cost of goods manufactured $247,000 beginning finished goods inventory $62,000 goods available $309,000 ending finished goods inventory -$143,000 cost of goods sold $166,000 ANTIOCH COMPANY balance sheet as of December 31, 2018 assets cash $502,000 raw material inventory $7,000 work in progress inventory $122,000 finished goods inventory $143,000 office equipment $92,000 manufacturing equipment $96,000 total assets $962,000 liabilities and stockholders' equity stockholders' equity common stock $598,000 retained earnings $364,000 total stockholders' equity $962,000

For formulas and calculations, refer to the image below -

C-1 A B c-2 ANTIOCH COMPANY income statement for the year ended December 31, 2018 sales 432000 cost of goods sold =D20 gross profit =H5-H6 selling and administrative expenses 1=28000+66000+20000 net income =H7-H8 ANTIOCH COMPANY statement of cost of goods manufactured for the year ended December 31, 2018 beginning raw material inventory 55000 purchases 51000 raw material available =D5+D6 ending raw material inventory =-(D7-09) raw materials used 99000 labor 96000 overhead =11000+64000+72000 total manufacturing costs =D9+D10+D11 beginning work in progress inventory 27000 total work in progress inventory =D12+D13 ending work in progress inventory -(D14-D16) cost of goods manufactured 247000 beginning finished goods inventory 62000 goods available =D16+D17 ending finished goods inventory --(D18-D20) cost of goods sold 166000 cash raw material inventory work in progress inventory finished goods inventory office equipment manufacturing equipment total assets ANTIOCH COMPANY balance sheet as of December 31, 2018 assets =666000-28000-51000-66000-96000-112000-107000-64000-72000+432000 --D8 --D15 -119 =112000-20000 =107000-11000 =SUM(H15:H20) liabilities and stockholders' equity stockholders' equity =598000 =212000+H9 =H24+H25 common stock retained earnings total stockholders' equity

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