Event Assets Balance Sheet Income Statement Stockholders' Equity No. Work in Raw Cash + Process Materials Finished Goods BV Office Furniture BV Manufacturing Equipment Common Stock Retained Earnings Revenue Expense Net Income Inventory 669,000 53,000 + 37,000 48,000 + 595,000+ 212,000 1 2 3 4 5. 6. 7 8. 9. 10. 11 12 13. 14 Total 669,000+ 53,000+ 37,000+ 48,000+ 0+ 0 595,000+ 212,000 0 Check my work Statement o Flow 0 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, $669,000; Raw Materials Inventory, $53,000; Work in Process Inventory, $37,000; Finished Goods Inventory, $48,000; Common Stock, $595,000; and Retained Earnings, $212,000. 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 $30,000 of research and development costs. 2. Paid $59,000 for raw materials that will be used to make eBook readers. 3. Placed $85,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $73,000 for salaries of selling and administrative employees. 5. Paid $106,000 for wages of production workers. 6. Paid $151,000 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 $11,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost-salvage) useful life]. Specifically, ($151,000 - $11,000) 7 $20,000. 8. Paid $146,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $20,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost-salvage) useful life]. Specifically, ($146,000 $20,000) 7 = $18,000. - 10. Paid $63,000 for rent and utility costs on the manufacturing facility. 11. Paid $76,000 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 $257,000 from work in process inventory to finished goods. 13. Sold 920 eBook readers for $425,000. 14. It cost Antioch $174,800 to make the eBook readers sold in Event 13. Assets Balance Sheet Stockholders' Equity Income Statement Finished Goods BV Office Furniture BV Manufacturing Equipment Common Stock Retained Earnings Revenue Expense Net Income 00 + 48,000 + 595,000+ 212,000 + + 00 48,000+ 0+ 0 595,000 212,000 Prev Nex Statement of Cash Flow Prepare a schedule of cost of goods manufactured and sold for the year. (Amounts to be deducted should be indicated with a minus sign.) ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, Year 2 Beginning raw materials Inventory $ 71,000 Purchases 52,000 Raw materials available 123,000 Ending raw materials inventory Raw materials used 123,000 Labor Overhead Total manufacturing costs 123,000 Beginning work in process inventory Total work in process inventory 123,000 Ending work in process inventory Cost of goods manufactured 123,000 Beginning finished goods inventory Goods available 123,000 Ending finished goods inventory Cost of goods sold $ 123,000 < Req A Req C2 > Req A Req 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 Net income Net loss Req C1 Req C3 >