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 5661,000; Raw Materials Inventory, 568.000. Work in Process Inventory, $21.000, Finished Goods Inventory, 545.000, Common Stock. $594,000, and Retained Earrings, $201.000 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 $24.000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers 3. Placed $88,000 of the raw materials cost into the process of manufacturing eBook readers 4. Paid $63,000 for salaries of selling and administrative employees. 5. Paid $111.000 for wages of production workers 6. Pald $137.000 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 517000 salvage value and a six-year life. The amount of depreciation is computed as Cost - salvage) useful life. Specifically (5137000 - $17.000) - 6$20,000 8. Pald $102,000 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 seven-year life. The amount of depreciation is computed as [(Cost - salvage) - useful lifeSpecifically ($102,000 - $25,000) - 7 = $11,000. 10. Paid $65,000 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 950 eBook readers for $433,000 14. It cost Antioch $161,500 to make the eBook readers sold in Event 13 Required: a. Show how these events affect the balance sheet income statement, and statement of cash flows by recording them in a horizontal financial statements model C-1. Prepare a schedule of cost of goods manufactured and sold for the year c-2. Prepare a formal income statement for the year c-3. Prepare a balance sheet for the year Complete this question by entering your answer in the tabs below. ANTIOCH COMPANY Financial Statements Model Balance Sheet Event In Stockholders' Equity No. Cash Raw Materials Assets Work in Finished Process Goods Inventory 21,000+ 45,000+ BV Office Furniture BV Manufacturing Equipment Common Stock Revenue Retained Earnings 201.000 651,000+ 68,000+ 594 000 + 1 11 2 3 + . 4 5 6 7 8 ANTIOCH COMPANY Financial Statements Model Balance Sheet Assets Income Statement Stockholders' Equity Statement of Cash Flow in 55 ory 1.000 + Finished Goods BV Office Furniture BV Manufacturing Equipment Common Stock Revenue Expense Net Income Retained Earnings 201.000 45,000+ 594 000 + II 8 9 ++++ 10 11 12 13 14 + + + Total 661.000 68,000 + 21,000+ 45,000 + 0 + 0 = 594,000+ 201.000 45.000 0+ 0 59.4000 201.000 0 ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, Year 2 Beginning raw materials Inventory Purchases 0 Raw materials available Ending raw materials inventory Raw materials used 0 Labor Overhead 0 Total manufacturing costs Beginning work in process inventory Total work in process inventory Ending work in process inventory Cost of goods manufactured 0 0 Reg A Req 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 ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 Assets $ 0 Total assets Stockholders' Equity Total stockholders' equity $ 0
