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, $662,000: Raw Materials Inventory. $53,000; Work in Process Inventory. $33,000: Finished Goods Inventory. $44,000; Common Stock, $601,000, and Retained Earnings. $191,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $31,000 of research and development costs. 2. Pald $67,000 for raw materials that will be used to make eBook readers. 3. Placed $96,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Pald $68,000 for salaries of selling and administrative employees. 5. Paid $99,000 for wages of production workers. 6. Paid $137,000 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 $17,000 salvage value and a six-year life. The amount of depreciation is computed as [(Cost-salvage) + useful life) Specifically. ($137,000 - $17,000) - 6 - $20,000. 8. Paid $143,000 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 seven-year life. The amount of depreciation is computed as (Cost-salvage) - useful life). Specifically, ($143,000 - $24,000) - 7 - $17,000. 10. Paid $52,000 for rent and utility costs on the manufacturing facility. 11. Paid $77,000 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 $259,000 from work in process inventory to finished goods. 13. Sold 850 eBook readers for $439,000. 14. It cost Antioch $161,500 to make the eBook readers sold in Event 13

Answer 1

assets statement of cash flows event no. finished goods.) manufacturing + office furniture + inventory equipment 44,000 stockholders' equity income statement retained net = common stock + revenue + expenses = earnings income 601,000 + 191,000 + -31,000 31,000 = -31,000 1 + + + OA work in progress cash + raw materials +| inventory 662,000 + 53,000 33,000 -31,000+ -67,000+ 67,000 -96,000 96,000 -68,000 -99,000 99,000 -137,000+ -31,000 -67,000 + + + OA + + + + + + -68,000 ОА 68,000 + 1 = -68,000 + + + + + -68,000 -99,000 -137,000 OA IA + + + + + 137,000 -20,000 + + + -20,000 20,000 + = -20,000 + -143,000 + + + + IA + -143,000 + 143,000 -17,000 + + + + + + + + + + -52,000+ -77,000 + 17,000 52,000 77,000 -259,000 -52,000| -77,000 OA OA + + + + + + ,000 + + 439,000 + + + + ТОА + 14 total -161,500 141,500 + 439,000 439,000 +|-161,500 + 349,500 439,000 161,500 280,500 = 439,000 439,000 = |-161,500 = 158,500 427,000 + 24,000 115,000 + + + 117,000 + 126,000 = 601,000 +

ANTIOCH COMPANY income statement for the year ended December 31, 2018 sales $439,000 cost of goods sold $161,500 gross profit $277,500 selling and administrative expenses $119,000 net income $158,500 ANTIOCH COMPANY | statement of cost of goods manufactured for the year ended December 31, 2018 beginning raw material inventory $53,000 purchases $67,000 raw material available $120,000 ending raw material inventory -$24,000 raw materials used $96,000 labor $99,000 overhead $146,000 total manufacturing costs $341,000 beginning work in progress inventory $33,000 total work in progress inventory $374,000 ending work in progress inventory -$115,000 cost of goods manufactured $259,000 beginning finished goods inventory $44,000 goods available $303,000 ending finished goods inventory -$141,500 cost of goods sold $161,500 ANTIOCH COMPANY balance sheet as of December 31, 2018 assets cash $427,000 raw material inventory $24,000 work in progress inventory $115,000 finished goods inventory $141,500 office furniture $117,000 manufacturing equipment $126,000 total assets $950,500 liabilities and stockholders' equity stockholders' equity common stock $601,000 retained earnings $349,500 total stockholders' equity $950,500

In case you have any query, kindly ask in comments.