Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $662,000; Raw Materials Inventory, $53,000; Work in Process Inventory, $35,000; Finished Goods Inventory. $51,000: Common Stock. $596,000, and Retained Earnings. $205,000. Antioch experienced the following accounting events during Year 2. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 5:37 1. Paid $28,000 of research and development costs. 2. Paid $48,000 for raw materials that will be used to make eBook readers. 3. Placed $95,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $64,000 for salaries of selling and administrative employees. 5. Pald $109,000 for wages of production workers. 6. Poid $140,000 to purchase equipment used in selling and administrative offices 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1 Year 2. It has a $20,000 salvage value and a six-year life. The amount of depreciation is computed as ((Cost - salvage) useful life). Specifically, ($140,000 - 8. Paid $134,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $26,000 salvage value and a nine-year life. The amount of depreciation is computed as [(Cost - selvage) useful life). Specifically. ($134,000 - $26,000) + 9 $12,000. 10. Pald $64,000 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 $246,000 from work in process inventory to finished goods. 13. Sold 820 eBook readers for $439,000. 14. It cost Antioch $164,000 to make the eBook readers sold in Event 13. Check my work mode: This shows what is correct or incorrect for the work ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, Year 2 Beginning raw materials Inventory $ 53,000 Purchases 48,000 Raw materials available 101,000 Ending raw materials inventory (12,000) Raw materials used 89,000 Labor Overhead Total manufacturing costs 89,000 Beginning work in process inventory Total work in process inventory 89,000 Ending work in process inventory Cost of goods manufactured 89,000 Beginning finished goods inventory Goods available 89,000 Ending finished goods inventory Cost of goods sold $ 89,000 Saved eck my work mode : This shows what is correct or incorrect for the work you have completed so Answer is not complete. Complete this question by entering your answer in the tabs below. Req A Req C1 Reg C2 Req C3 Prepare a formal income statement for the year. ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 Check my work mode: This shows what is correct or incorrect for the we 2 Prepare a balance sheet for the year. ERRE ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 points Assets 2 02.14.46 $ 0 Total assets Stockholders' Equity Total stockholders' equity $ 0 Saved eck my work mode : This shows what is correct or incorrect for the work you have completed so Answer is not complete. Complete this question by entering your answer in the tabs below. Req A Req C1 Reg C2 Req C3 Prepare a formal income statement for the year. ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 Check my work mode: This shows what is correct or incorrect for the we 2 Prepare a balance sheet for the year. ERRE ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 points Assets 2 02.14.46 $ 0 Total assets Stockholders' Equity Total stockholders' equity $ 0
