Question

also a statement of cash flow

Saved Help 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, $667,000; Raw Materials Inventory, $55,000; Work in Process Inventory, $29,000; Finished Goods Inventory, $53,000; Common Stock, $598,000; and Retained Earnings, $206,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $30,000 of research and development costs. 2. Paid $47,000 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 $68,000 for salaries of selling and administrative employees. 5. Paid $97,000 for wages of production workers. 6. Paid $72,000 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 six-year life. The amount of depreciation is computed as ((Cost – salvage) ÷ useful life). Specifically, ($72,000 - $12,000) + 6 = $10,000. 8. Paid $141,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $24,000 salvage value and a nine-year life. The amount of depreciation is computed as [(Cost - salvage) + useful life). Specifically, ($141,000 – $24,000) 9 = $13,000. 10. Paid $46,000 for rent and utility costs on the manufacturing facility. 11. Paid $78,000 for inventory holding expenses foçcompleted 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 $252,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $432,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. < Prev of 3 Next >

Answer 1

RM 55,000 income statement Revenue Expenses Net income WIP 29,000 Assets FG Office furniture Manufacturing equipment 53,000 Stockholders equity Common stock Retained earnings 598,000 206,000 Cash 667,000 (30,000) (47,000) (30,000) (30,000) 1 2 47,000 (99,000)| 99,000 (68,000) (68,000) (68,000) (97,000) (72,000)| 97,000 72,000 (10,000) (10,000) (10,000) (141,000 141,000 (13,000) (13,000) (13,000) 46,000 (46,000) (78,000) (78,000) (78,000) (252,000) 252,000 432,000 432,000 12 13 14 Total (153,600)| 151,400 (153,600)| (352,600) 432,000 (153,600) 79,400 520,000 3,000 19,000 62,000 128,000 598,000 206,000 432,000

Note

ALL THE CASH PAID ARE GIVEN IN NEGATIVE AND ALL THE EXPENSES ARE GIVEN IN NEGATIVE. IF THE FORMULA IS KEPT INCOME MINUS EXPENSES THEN THE EXPENSES CAN BE WRITTEN IN POSITIVE.