Question
Required information Problem 10-27 Schedule of cost of goods manufactured and sold LO 10-3 [The following information applies to the questions displayed below.] Antioch Company
Required information
Problem 10-27 Schedule of cost of goods manufactured and sold LO 10-3
[The following information applies to the questions displayed below.]
Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $674,000; Raw Materials Inventory, $52,000; Work in Process Inventory, $23,000; Finished Goods Inventory, $48,000; Common Stock, $601,000; and Retained Earnings, $196,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.
- Paid $32,000 of research and development costs.
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Paid $57,000 for raw materials that will be used to make eBook readers.
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Placed $95,000 of the raw materials cost into the process of manufacturing eBook readers.
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Paid $65,000 for salaries of selling and administrative employees.
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Paid $104,000 for wages of production workers.
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Paid $66,000 to purchase equipment used in selling and administrative offices.
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Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $16,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost salvage) useful life]. Specifically, ($66,000 $16,000) 5 = $10,000.
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Paid $168,000 to purchase manufacturing equipment.
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Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $28,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost salvage) useful life]. Specifically, ($168,000 $28,000) 7 = $20,000.
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Paid $53,000 for rent and utility costs on the manufacturing facility.
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Paid $74,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).
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Completed and transferred eBook readers that had total cost of $244,000 from work in process inventory to finished goods.
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Sold 810 eBook readers for $426,000.
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It cost Antioch $170,100 to make the eBook readers sold in Event 13.
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