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, $661,000, Raw Materials Inventory, $59,000; Work in Process Inventory, $29,000, Finished Goods Inventory, $60,000, Common Stock, $591,000, and Retained Earnings, $218,000. 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 $27,000 of research and development costs. 2. Paid $66,000 for raw materials that will be used to make eBook readers. 3. Placed $101,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $70,000 for salaries of selling and administrative employees! 5. Paid $105,000 for wages of production workers. 6. Paid $157,000 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 seven-year life. The amount of depreciation is computed as [(Cost-salvage) useful life] Specifically. ($157.000 $17,000)-7 $20,000. 8. Paid $205,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2 It has a $25,000 salvage value and a nine-year life. The amount of depreciation is computed as [(Cost-salvage) useful life] Specifically. ($205,000-$25,000)-9-$20,000. 10. Paid $47,000 for rent and utility costs on the manufacturing facility. 11. Paid $74,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost) < Prev 5 of 5 Next >