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Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $670,000; Raw Materials Inventory, $55,000; Work in Process Inventory, $30,000; Finished Goods Inventory, $48,000; Common Stock, $589,000; and Retained Earnings, $214,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

Paid $30,000 of research and development costs. Paid $59,000 for raw materials that will be used to make eBook readers.

Placed $95,000 of the raw materials cost into the process of manufacturing eBook readers.

Paid $76,000 for salaries of selling and administrative employees.

Paid $108,000 for wages of production workers.

Paid $86,000 to purchase equipment used in selling and administrative offices.

Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $16,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost salvage) useful life]. Specifically, ($86,000 $16,000) 7 = $10,000.

Paid $176,000 to purchase manufacturing equipment.

Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $24,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost salvage) useful life]. Specifically, ($176,000 $24,000) 8 = $19,000.

Paid $56,000 for rent and utility costs on the manufacturing facility.

Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).

Completed and transferred eBook readers that had total cost of $247,000 from work in process inventory to finished goods.

Sold 930 eBook readers for $436,000.

It cost Antioch $148,800 to make the eBook readers sold in Event 13.

Schedule of Costs of Goods Manufactured and Sold

Beginning raw materials inventory	55,000
Purchases	59,000
Raw Materials Available	114,000
Ending Raw materials inventory	-19,000
Raw materials used	95,000
Labor	108,000
Overhead	?
Total manufacturing costs
Beginning work in process inventory
Ending Work in process inventory	?
Costs of goods manufactured
Beginning finished goods inventory	48,000
Goods available
Cost of goods sold	?

c-2. Prepare a formal income statement for the year. ANTIOCH COMPANY Income Statement For the Year Ended December 31, 2018 c-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 0

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