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Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $660,000; Raw Materials Inventory, $51,000; Work in Process Inventory, $18,000; Finished Goods Inventory, $43,000; Common Stock, $583,000; and Retained Earnings, $189,000.
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 $23,000 of research and development costs.
2. Paid $47,000 for raw materials that will be used to make eBook readers.
3. Placed $83,000 of the raw materials cost into the process of manufacturing eBook readers.
4. Paid $60,000 for salaries of selling and administrative employees.
5. Paid $91,000 for wages of production workers.
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