How do i find the overhead costs
Antoch Company makes eBook readers. The company hed the following amounts at the beginning of Year 2: Cash, $673,000; Raw Materials inventory, $66,000; Work in Process inventory, $31,000; Finished Goods Inventory, $54,000; Common $ tock, $596,000; and Retained Earnings, $228,000. Antoch experienced the following accounting events during Year 2 . Other than the acjusting entries for depreciation, assume that all transactions are cash tronsactions. 1. Paid $27,000 of research and development costs. 2. Paid $62,000 for raw materlals that will be used to make eBook readers. 3. Placed $86,000 of the raw materiais cost into the process of manufacturing eBook readers. 4. Paid $77,000 for salaries of selling and administrative employees. 5. Paid $104,000 for wages of production workers. 6. Paid $86,000 to purchase equipment used in selting and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, Year 2 . It has a $16,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage )+ useful life], Specifically, ($86,000$16,000)+ 7=$10,000. 8. Paid $140,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment: The equipment was acquired on January 1, Year 2 . It has a $28,000 salvoge value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) +useful life]. Specifically, ($140,000$28,000)+7=$16,000. 10. Paid $46,000 for rent and utility costs on the manufacturing focility. 11. Paid $71,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage costh. 12. Completed and transferred eBook readers that had total cost of $252,000 from work in process inventory to finished goods. 13. Sold 880 eBook readers for $432,000. 14. It cost Antioch $184,800 to make the eBook readers sold in Event 13 . Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), Investing actlvities (IA), or financing activities. (FA). The first evert is recorded as an example c-1. Prepare a schedule of cost of goods manufactured and sold for the year. c-2. Prepore of formal income statement for the year. c-3. Prepare a balance sheet for the year. d. Distingulsh between the product costs and the upstream costs that Antioch incurred