Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help getting the right answers for C1 and C2 The following information applies to the questions displayed below. Antioch Company makes eBook readers.

image text in transcribed
I need help getting the right answers for C1 and C2
image text in transcribed
image text in transcribed
The following information applies to the questions displayed below. Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2014 Cash, $668,000; Raw Materials Inventory, $67,000; Work in Process Inventory, $23,000, Finished Goods Inventory, $45,000; Common Stock, $585,000; and Retained Earnings, $218,000. Antioch experienced the following accounting events during 2014. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions 1. Paid $27,000 of research and development costs 2. Paid $50,000 for raw materials that will be used to make eBook readers 3. Placed $99,000 of the raw materials cost into the process of manufacturing eBook readers 4. Paid $67,000 for salaries of selling and administrative employees 5. Paid $102,000 for wages of production workers 6.Paid $89,000 to purchase equipment used in selling and administrative offices. Recognized depreciation on the office equipment. The equipment was acquired on January, 1, 2014It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage-useful life, specifically, ($89,000-$19,000) 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 2014. It has a $23,000 salvage value and a nine-year life. The amount of depreciation is computed as (Cost - salvage)+ useful life), Specifically, ($140,000 $23,000)+9-$13,000 10 Paid $55,000 for rent and utility costs on the manufacturing facility 11.Paid $77,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, 12 Completed and transferred eBook readers that had total cost of $260,000 from work in process inventory 13 Sold 810 eBook readers for $432,000 salaries of warehouse personnel, and other general storage cost) to finished goods 14.It cost Antioch $145,800 to make the eBook readers sold in Event 13 Required information 10.00 points

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson

9th Edition

0538842822, 978-0538842822

More Books

Students also viewed these Accounting questions

Question

What are HR ethics?

Answered: 1 week ago

Question

What does corporate sustainability mean?

Answered: 1 week ago