Evian Corporation is a private corporation formed for the purpose of providing

the products and the services needed to irrigate farms, parks, commercial projects,

and private homes. It has a centrally located factory in a U.S. city that manufactures the

products it markets to retail outlets across the nation. It also maintains a division that

provides installation and warranty servicing in six metropolitan areas.

The mission of Evian is to manufacture quality parts that can be used for effective

irrigation projects that also conserve water. By that effort, the company hopes to satisfy

its customers, provide rapid and responsible service, and serve the community and

the employees who represent them in each community.

The company has been growing rapidly, so management is considering new ideas to

help the company continue its growth and maintain the high quality of its products.

Evian was founded by Will Winkman who is the company president and chief

executive officer (CEO). Working with him from the companys inception was Wills brother,

Ben, whose sprinkler designs and ideas about the installation of proper systems have been

a major basis of the companys success. Ben is the vice president who oversees all aspects

of design and production in the company. The factory itself is managed by Todd Senter who hires his line managers to supervise the factory employees. The factory makes all of the parts for the irrigation systems. The purchasing department is managed by Hector Hines.

The installation and training division is overseen by vice president Henry Writer, who

supervises the managers of the six local installation operations. Each of these local managers

hires his or her own local service people. These service employees are trained by the home

office under Henry Writers direction because of the uniqueness of the companys products.

There is a small Human Resources department under the direction of Sally Fenton,

a vice president who handles the employee paperwork, though hiring is actually performed

by the separate departments. Sam Totter is the vice president who heads the sales

and marketing area; he oversees 10 well-trained salespeople.

The accounting and finance division of the company is headed by Abe Headman, who

is the chief financial officer (CFO) and a company vice president; he is a member of the

Institute of Management Accountants and holds a certificate in management accounting.

He has a small staff of Certified Public Accountants, including a controller and a treasurer,

and a staff of accounting input operators who maintain the financial records.

A partial list of Evians accounts and their balances for the month of November 2012 follows.

Accounts Receivable $ 245,000

Advertising Expenses 54,000

Cash 250,000

DepreciationFactory Equipment 16,800

DepreciationOffice Equipment 2,400

Direct Labor 42,000

Factory Supplies Used 16,800

Factory Utilities 10,200

Finished Goods Inventory, November 30 67,700

Finished Goods Inventory, October 31 72,500

Indirect Labor 48,000

Office Supplies Expense 1,600

Other Administrative Expenses 72,000

Prepaid Expenses 41,250

Raw Materials Inventory, November 30 52,600

Raw Materials Inventory, October 31 38,300

Raw Materials Purchases 184,500

RentFactory Equipment 47,000

RepairsFactory Equipment 4,500

Salaries for the office workers 325,500

Sales 1,225,000

Sales Commissions 40,500

Work In Process Inventory October 31 52,700

Work In Process Inventory, November 30 41,000

Instructions for part 1

(a) Based on the information given, construct an organizational chart of Evian

Corporation. (see illustration 1-2 in text)

(b) A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule, a cost of goods sold schedule, an income statement, and the current assets section of the balance sheet for Evian Corporation for the month of November 2012. (see illustrations in the text)