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. $670,000; Raw Materials Inventory. $57.000; Work in Process Inventory. $33,000. Finished Goods Inventory $50,000: Common Stock, $587,000; and Retained Earnings, $223,000. 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 $61,000 for raw materials that will be used to make eBook readers 3. Placed $84.000 of the raw materials cost into the process of manufacturing eBook readers. 4 Paid $64.000 for salaries of seling and administrative employees 5. Paid $94,000 for wages of production workers. 6. Paia $97.000 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 $17.000 salvage value and a eight-year life. The amount of depreciation is computed as [iCost- savage) - useful life). Specifically.($97.000 $17000) - 8 = $10,000. 8. Paid $169,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2 It has a $29,000 salvage value and a seven-year life. The amount of depreciation is computed as Cost - Salvage) - usefulefel Specifically ($169,000 - $29,000) = 7 = $20.000 10. Pald 553,000 for rent and utility costs on the manufacturing facility 11. Paid 571,000 for inventory hold ng expenses for completed eBook readers (rental of warenouse space salaries of worenouse personnel and other general storage cost) 12. Completed and transferred eBook readers that had total cost of $256.000 from work in process inventory to finished goods 13. Sold 870 eBook readers for $431,000 14. It cost Antioch 5156,600 to make the eBook readers sold in Event 13 thing Prepare a formal income statement for the year. ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 Sales revenue S431.000 Cost of goods sold Gross margin Selling and administrative expense (156.600) 274.400 (40.000) Net income