es Problem 10-27A (Algo) Schedule of cost of goods manufactured and sold LO 10-3 Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $675,000; Raw Materials Inventory, $59,000; Work in Process Inventory, $37,000; Finished Goods Inventory, $54,000; Common Stock, $602,000; and Retained Earnings, $223,000. 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 $32,000 of research and development costs. 2. Paid $62,000 for raw materials that will be used to make eBook readers. 3. Placed $100,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $77,000 for salaries of selling and administrative employees. 5. Paid $110,000 for wages of production workers. 6. Paid $85,000 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 $15,000 salvage value and a seven-year life. The amount of depreciation is computed as ((Cost-salvage) + useful life). Specifically, ($85,000- $15,000)+7 $10,000. 8. Paid $181,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $29,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost-salvage) + useful life). Specifically, ($181,000-$29,000) +8=$19,000. 10. Paid $46,000 for rent and utility costs on the manufacturing facility. 11. Paid $74,000 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 $242,000 from work in process inventory to finished goods. 13. Sold 820 eBook readers for $430,000. 14. It cost Antioch $155,800 to make the eBook readers sold in Event 13. Required: a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. c-1. Prepare a schedule of cost of goods manufactured and sold for the year. c-2. Prepare a formal income statement for the year. Complete this question by entering your answer in the tabs belo Req A Req C1 Req C2 Req C3 Prepare a balance sheet for the year. ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 Assets Cash Raw materials inventory Work in process inventory Finished goods inventory Office equipment Manufacturing equipment Total assets Stockholders' Equity Common stock Retained earnings $ 0 Total stockholders' equity $ 0 Saved ANTIOCH COMPANY Financial Statements Model. Balance Sheet Assets nt 9. Work in Raw Cash Process Materials Finished Goods BV Office Furniture BV Manufacturing Equipment Inventory 675,000 59,000+ 37,000+ 54,000+ 1. + 2. 3. 4. 5. 6 7. 8. 9. 10. 11. 12 + 13. 14. Total 675,000 59,000 37,000 54,000 0+ = < Prev 2 of 2 Next > Help Save & Exit Submit Check my work Income Statement Stockholders' Equity Common Stock Retained Revenue Expense Net Income Earnings 602,000+ 223,000 602,000 223,000 0 Beck RegC1>