please help. not sure if some of my answers are incoorect due to my financial statement.
Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $678,000; Raw Materials Inventory, $54,000; Work in Process Inventory, $21,000; Finished Goods Inventory, $52,000 Common Stock, $587,000; and Retained Earnings, $218,000. Antioch experienced the following accounting events during 2018. 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 $61,000 for raw materials that will be used to make eBook readers 3. Placed $86,000 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 $109,000 for wages of production workers. 6. Paid $114,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $14,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost- salvage)+ useful life] Specifically, ($114,000-$14,000) 5-$20,000. 8. Paid $117,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $29,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost-salvage) useful life] Specifically, ($117,000-$29,000) +8-$11,000 10. Paid $57,000 for rent and utility costs on the manufacturing facility 11 Paid $75,000 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 $246.000 from work in process inventory to finished goods 13 Sold 900 eBook readers for $436,000 14. It cost Antioch $162.000 to make the eBook readers sold in Event 13. ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, 2018 Beginning raw materials Inventory $ 54,000 Purchases 61,000 Raw materials available 115,000 Ending raw materials inventory (29,000) Raw materials used 86,000 Labor 109,000 Overhead 57,000 Total manufacturing costs 252,000 Beginning work in process inventory Total work in process inventory 21,000 273,000 Ending work in process inventory Cost of goods manufactured (38.000) 235.000 Beginning finished goods inventory Goods available 61.000 296.000 Ending finished goods inventory Cost of goods sold 136,000 432 000 ANTIOCH COMPANY Income Statement For the Year Ended December 31, 2018 S 436,000 Sales revenue 162,000 Cost of goods sold Gross margin 274,000 Selling and administrative expense 195,000 79.000 Net income ANTIOCH COMPANY Balance Sheet As of December 31, 2018 Assets Cash $ 481,000 Raw materials inventory 29,000 Work in process inventory 38,000 Finished goods inventory 136,000 106,000 Manufacturing equipment Total assets S 790,000 Stockholders' Equity 587.000 Common stock Retained earnings 297.000 Total stockholders' equity 884,000
