Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 10-27 Schedule of cost of goods manufactured and sold LO 10-3 The folowing information apples to the questions displayed below) Antioch Company

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information Problem 10-27 Schedule of cost of goods manufactured and sold LO 10-3 The folowing information apples to the questions displayed below) Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018 Cash, $664,000 Raw Materials Inventory, $60,000: Work in Process Inventory, $33,000: Finished Goods Inventory, $47000 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions on Stock $588,000, and Retained Earnings, $216,000. Antioch experienced the following accounting events during 1 Pald $30,000 of research and development costs. 2. Pald $48,000 for raw materials that will be used to make eBook readers 3. Placed $97000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $79,000 for salarles of selling and administratve employees. 5. Paid $100,000 for wages of production workers. Paid $65,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. Iit has a $15,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost- salvage) + useful life) Specifically. ($65,000-$15,000) 5 $10000. 8. Paid $164,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufa $29,000 salvage value and a nine-year life. The amount of depreciation is computed as [(Cost equipment The equipment was acquired on January 1, 2018. It has a salvage) + useful life) Specifically, ($164,000-$29,000 9 = $15,000. 10. Paid $58,000 for rent and utility costs on the manufacturing fac 1t Paid $79,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of ility warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $255,000 from work in process inventory to finished goods 13 Sold 890 eBook readers for $429,000. 14. It cost Antioch $186,900 to make the eBook readers sold in Event 13. minus sign.) 31, 2018 108,000 itos 100 c-2. Prepare a formal income statement for the year ANTIOCH COMPANY Income Statement For the Year Ended December 31, 2018 e-3. Prepare a balance sheet for the year ANTIOCH COMPANY Balance Sheet As of December 31, 2018 Assets Total assets Stockholders Equity Total stockholders equity 93900099900 009000900090 000000000O 0000000000oooo

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Derivative Strategies

Authors: Barbara Davison

1st Edition

0894134434, 978-0894134432

More Books

Students also viewed these Accounting questions

Question

5. Prepare for the role of interviewee

Answered: 1 week ago

Question

6. Secure job interviews and manage them with confidence

Answered: 1 week ago