CH 2 Problem 10-27A (Algo) Schedule of cost of goods manufactured and sold LO 10-3 12 point Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2. Cash $679,000, Raw Materials Inventory, S53,000, Work in Process Inventory, 534,000 Finished Goods Inventory, 55.000, Common Stock, S594,000, and Retoined Earnings, $227,000 Antioch experienced the following accounting events during Year 2. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions ebook int References 1. Pald $27,000 of research and development costs 2. Pald $62,000 for raw materials that will be used to make eBook readers 3. Placed $94,000 of the raw materials cost into the process of manufacturing eBook readers 4. Paid $74,000 for salaries of selling and administrative employees. 5. Pald $105,000 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 Year 2 It has a $17000 salvage value and a six year life. The amount of depreciation is computed as ((Cost-salvage) + useful life). Specifically, ($137000 - $17.000) - 6-$20,000 8. Paid $111.000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1 Year 2. It has a $27000 salvage value and a seven-year life. The amount of depreciation is computed asf|Cost - salvage) + useful life) Specifically, ($111.000 - $27.000)+7=$12.000 10. Paid $59,000 for rent and utility costs on the manufacturing facility 11. Poid $75,000 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 $250,000 from work in process inventory to finished goods 13. Sold 1000 eBook readers for $437000 14. It cost Antioch $190,000 to make the eBook readers sold in Event 13, O . FE 13 7 2 3 3 5 7 0 9 0 E E R T y C Saved - 2 . Req A Req C1 Req C2 Req C3 -ints Prepare a formal income statement for the year. eBook ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 Print References