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. $680,000: Raw Materials Inventory. $59.000: Work in Process Inventory, $34,000; Finished Goods Inventory. $49.000: Common Stock. $589,000; and Retained Earnings. $233,000. 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 $31,000 of research and development costs. 2. Paid $60,000 for raw materials that will be used to make eBook readers. 3. Placed $98.000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $68,000 for salaries of selling and administrative employees. 5. Paid $108,000 for wages of production workers. 6. Paid $113,000 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 $13.000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost - salvage) + useful life). Specifically. ($113,000 $13.000) + 5 = $20,000. 8. Paid S120,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1. Year 2. It has a $22.000 salvage value and a seven-year life. The amount of depreciation is computed as [[Cost - salvage) - useful life]. Specifically, ($120,000 - $22.000) = 7 = $14.000. 10. Paid $48,000 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. salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $241.000 from work in process inventory to finished goods 13. Sold 880 eBook readers for $439.000. 14. It cost Antioch $158.400 to make the eBook readers sold in Event 13. Income Statement ers' Equity Statement of Cash Flow Retained Earnings Revenue Expense Net Income 233,000 - 31.000 (31.000) (31.000) (60,000) IA X 11 68.000 > (68,000) 3 (68,000) (108,000) IA FA 11 = (113,000) OA 20.000 11 (20.000) (120.000) $ > 14.000 > (14.000) (48.000) FAX (77.000) (77.000) FA 0 77,000 = 439.000 439.000 $ 158.000 439.000 (158 400) 70.600 233.000 439.000 368.000 11 (188,000) Req A Req 01 Req 02 Req3 Prepare a schedule of cost of goods manufactured and minus sign.) ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, Year 2 Beginning raw materials Inventory $ 59.000 Purchases 60.000 Raw materials available 119,000 Ending raw materials inventory (21,000) Raw materials used 98.000 Labor 108.000 Overhead 139,000 X Total manufacturing costs 345.000 Beginning work in process 34.000 inventory Total work in process inventory 379.000 Ending work in process inventory (138.000) X Cost of goods manufactured 241,000 Beginning finished goods 49,000 inventory Goods available 290.000 Ending finished goods inventory Cost of goods sold IS 290 000 ReqA Complete this question by entering your answer in the t Reg A Reg C1 Reg C2 Reg C3 Prepare a formal income statement for the year. ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 439,000 Cost of goods sold (158,400) Gross margin 280.600 Selling and administrative expense (51,600) X Net income 229.000 X
