Problem 10-27A (Algo) Schedule of cost of goods manufactured and sold LO 10-3 Antioch Company makes eBook teaders. The company had the following amounts at the beginning of Year 2: Cash, 5665,000: Raw Materials inventory. \$60,000; Work in Process Inventory. \$35,000. Finished Goods Inventory. \$48,000; Common Stock \$593,000; and Retained Earnings, $215,000. Antioch experienced the following accounting events during Year 2 . Other than the adjusting entiles 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 $93,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Poid $68,000 for salaries of selling and administrative employees. 5. Pald $97,000 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. Pald $91,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $21,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) * useful life]. Specifically. ($91,000$21,000)+7=$10,000 10. Paid $60,000 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, salarles of warehouse. personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $247,000 from work in process inventory to finished goods. 13. Sold 920 eBook readers for $424,000. 14. It cost Antioch $184,000 to make the eBook readers sold in Event 13 . Required: a. Show how these events atfect the balance shect. income statement, and statement of cash liows by recording them in a horizontal financial statements model. c-1. Prepare a schedule of cost of goods manufactured and sold for the yeat. e-2. Prepare a focmal income statement for the yeat. c-3. Prepare a balance shect for the yeai. Complete this question by entering your answer in the tabs below. Prepare a schedule of cost of goods manufactured and sold minus sign.) Complete this question by entering your answer in the tabs b Prepare a formal income statement for the year. Prepare a balance sheet for the year
