Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $675,000; Raw Materials Inventory, $55,000; Work in Process Inventory, $35,000; Finished Goods Inventory. $49,000; Common Stock, $597,000 and Retained Earnings $217,000. Antioch experienced the following accounting events during Year 2. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $31,000 of research and development costs. 2. Paid $67,000 for raw materials that will be used to make eBook readers. 3. Placed $90,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $72,000 for salaries of selling and administrative employees 5. Paid $101,000 for wages of production workers. 6. Paid $156,000 to purchase equipment used in selling and administrative offices 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, Yeat 2. It has a $16,000 selvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) + useful life]. Specifically. (156,000 $16,000) + 7 - $20,000 8. Paid $190,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $28,000 salvage value and a nine-year life. The amount of depreciation is computed as f(Cost-salvage) useful life). Specifically ($190,000 - $28,000) + 9 - $18,000. 10. Paid $58,000 for rent and utility costs on the manufacturing facility 11. Paid $75,000 for inventory holding expenses for completed eBook readers trental 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 850 eBook readers for $423,000, 14. It cost Antioch $178,500 to make the eBook readers sold in Event 13 ANTIOCH COMPANY Financial Statements Model Balance Sheet Assets Stockholders' Equity Income Statement Cash Raw Materials Work in Process Inventory 35.000 Finished Goods BV Oce Furniture BV Manufacturing Equipment Common Stock Raven 675,000 55.000 Retained Earning 217.000 40.000 507.000 ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, Year 2 Beginning raw materials Inventory Purchases Raw materials available Ending raw materials inventory Raw materials used Labor Overhead Total manufacturing costs Beginning work in process inventory Total work in process inventory Ending work in process inventory Cost of goods manufactured Beginning finished goods inventory Goods available Ending finished goods inventory Cost of goods sold