Check my work Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2 Cash 5677000. Raw Materiais Inventory, 561000 Work in Process Inventory, $34,000: Finished Goods Inventory. $60.000. Common Stock 5587000, and Retained Earnings. $245,000. Antioch experienced the following accounting events during Year 2 Other than the adjusting entries for depreciation, assume that all transactions are cash transactions 1. Pald $28,000 of research and development costs 2 Paid $64,000 for raw materials that will be used to make eBook readers 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers 4. Pald $62,000 for salaries of selling and administrative employees 5. Paid $110,000 for wages of production workers 6. Paid $77.000 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 517,000 salvage value and a six year life. The amount of depreciation is computed as Cost - salvage) - useful titej Specifically. (577.000 $17.000) - 6 = $10.000 8 Paid S148,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1 Year 2. It has a 528.000 salvage value and a eight-year life. The amount of depreciation is computed as f(Cost-salvage) - useful lifej Specifically ($148,000 - $28.000) - 8 - $15,000 10 Paid $49.000 for rent and utility costs on the manufacturing facility 11. Paid 573.000 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 $260.000 from work in process inventory to finished goods 13. Sold 830 eBook readers for $433.000 14. It cost Antioch $149.400 to make the eBook readers sold in Event 13 CHERRY Wenk NO How Materials Work Process V Office V Manual C ed Reum 627.000 (20.000) (54000) 61,000+ ol Fleished Goods 60.000 ol 34.000 0 Stoch 587,000 ol ol 245.000 C.000 - 0 1 2 3 -10 26.000 64.000 ol 0 10 +10 10 ol + + + 4. + . 5 + 6 7 B 9 LLL 10 11 12 13 14 0 587.000 217,000 25.000 Total 585.000 60,000 125 000 34000 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 0 Ending raw materials inventory Raw materials used 0 Labor Overhead Total manufacturing costs 0 Beginning work in process inventory Total work in process inventory 0 Ending work in process inventory Cost of goods manufactured 0 Beginning finished goods inventory Goods available 0 Ending finished goods inventory 0 Cost of goods sold $ Red A Reg C1 Req C2 Req C3 Prepare a formal income statement for the year. ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2
