Reference no: EM131203371
Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2014: Cash, $673,000; Raw Materials Inventory, $70,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $62,000; Common Stock, $594,000; and Retained Earnings, $244,000. Antioch experienced the following accounting events during 2014. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.
1. Paid $25,000 of research and development costs.
2. Paid $61,000 for raw materials that will be used to make eBook readers.
3. Placed $96,000 of the raw materials cost into the process of manufacturing eBook readers.
4. Paid $80,000 for salaries of selling and administrative employees.
5. Paid $108,000 for wages of production workers.
6. Paid $114,000 to purchase equipment used in selling and administrative offices.
7. Recognized depreciation on the office equipment. The equipment was acquired on January, 1, 2014. It has a $14,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($114,000 – $14,000) ÷ 5 = $20,000.
8. Paid $177,000 to purchase manufacturing equipment.
9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2014. It has a $25,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($177,000 – $25,000) ÷ 8 = $19,000.
10. Paid $47,000 for rent and utility costs on the manufacturing facility.
11. Paid $78,000 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 $250,000 from work in process inventory to finished goods.
13. Sold 840 eBook readers for $430,000.
14. It cost Antioch $151,200 to make the eBook readers sold in Event 13.
|
What is an opportunity cost rate
: What is an opportunity cost rate? How is this rate used in discounted cash flow analysis, and where is it shown on a time line? Is the opportunity rate a single number that is used to evaluate all potential investments? Brigham, Eugene F.; Ehrhardt, ..
|
|
Determine the estimated before-tax rate of return
: A heat exchanger is being installed as part of a part of a plant modernization program. It costs $80,000, including installation, and is expected to reduce the overall plant fuel cost by $20,000 per year. Estimates of the useful life of the heat exch..
|
|
Employ job order costing system
: Select a company that would employ a job order costing system. Research the company and discuss why a job order costing system is the 'correct' fit for that organization. Discuss a product the company sells and discuss what direct and indirect costs ..
|
|
Assume that all transactions are cash transactions
: Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2014: Cash, $673,000; Raw Materials Inventory, $70,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $62,000; Common Stock, $594,000; and ..
|
|
Forecast securitys future performance
: Finance professionals are continually reminding investors that past performance of a security does not guarantee future performance. Why then, do professional investors use historical information to forecast a security’s future performance?
|
|
Mills funds represented an investment
: Plaintiff, Gregory Mills, and defendant, Robert Chauvin, formed a partnership and took ownership of a commercial office building located on Crescent Road in the town of Clifton Park, Saratoga County. If the court had accepted Chauvins claim that Mill..
|
|
Budget without raising the debt ceiling
: To balance the United States budget without raising the debt ceiling, the government would need to cut spending by 40% and raise taxes. Speaker of the House, John Boehner recently commented, “When government spending is slashed, jobs are lost and con..
|
|
Generate a projected income statement
: At the most recent strategic planning meeting, the board of directors of your company has voted to issue additional stock to raise capital for major expansions for the company in the next five years. The board is considering $5 million. Generate a pr..
|