Please see attached document. Only two questions

INSRUCTIONS: This document is to deliver the instructions for this project. 1.) All statements (i.e. manufacturing statement, I/S, B/S, etc.) must be completed in good form. 2.) Show all calculations and work for all questions. Waterways Continuing Prob Waterways 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 lawns. 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 Waterways 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. Waterways was founded by Will Winkman, who is the company president and chief executive officer (CEO). Working with him from the company's inception was Will's brother, Ben, whose sprinkler designs and ideas about the installation of proper systems have been a major basis of the company's 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 Writer's direction because of the uniqueness of the company's 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 Waterway's accounts and their balances for the month of November follows. Accounts Receivable $275,000 Advertising Expenses 54,000 Cash 260,000 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 68,800 Finished Goods Inventory, October 31 72,550 Indirect Labor 48,000 Office Supplies Expense 1,600 Other Administrative Expenses 72,000 Prepaid Expenses 41,250 Raw Materials Inventory, November 30 52,700 Raw Materials Inventory, October 31 38,000 Raw Materials Purchases 184,500 RentFactory Equipment 47,000 RepairsFactory Equipment Salaries 4,500 325,000 Sales 1,350,000 Sales Commissions 40,500 Work in Process Inventory, October 31 52,700 Work in Process Inventory, November 30 42,000 WCP15 Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. This problem asks you to help Waterways use a job order cost system to account for production of these parts. Waterways Continuing Problem WCP17 Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. This problem asks you to help Waterways use an activity-based costing system to account for its production activities. WCP - 15 Job Order Cost System Waterway Continuing Problem and the company management team has utilized the strategy of job order cost method. This method allocates cost to specific job orders and then assigns them to batches of products. Job costing is that preferred method for smaller and medium size companies. . Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. Periodically manufacturing supervisors as well as project supervisors report the job evolution to their managers, which in turn must evaluate the report. The accuracy of the job report is therefore critical. However, some stages are wrongfully reported, jeopardizing the manager's ability to make good decisions as a result of the erroneous data. Misstating the stage of completion could be intentional or unintentional. It is the job of supervisors to accurately report the stage of a project's completion. Accurate job completion reports affects managers' performance evaluations. It also helps in controlling costs and more importantly it assists managers in identifying discrepancies between actual and projected costs. In this case, the job completion stage could be a good tool to evaluate employees' performance during the project. Therefore, this tool could detect substandard employees. Accurate job reporting is imperative in controlling costs. Products or project costs flow through every stage. Managers must be able to follow the costs throughout. Therefore, an accurate job completion is critical for cost control. Thus, misstating that stage has a negative impact on the manager ability. WCP - 17 WATERWAY CORPORATION Activity Cost pools Irrigation Installation Machining Customer orders Shipping Design Selling Expected Estimated use of cost Actual use Overhead drivers per of Drivers -A activity - B - C Overhea Cost d rates Drivers [A/B] D labor cost 1,998,432 12960 12941 154.2 Machine 1,670,40 33,408,00 33,409,00 hours 0 0 0 0.05 No. of orders 30,636 2553 2,520 12 Direct N/A Directly N/A Cost per design 820 8 7 102.5 No. of Sales Call 350,400 21,900 22,100 15 Actual Cost assigned [DxC] 1,995,502.20 1,670,450 30,240 N/A 717.5 353,600 Thus, ABC costing method will help Waterway Corporation By associating cost to the activity, a clear relationship can be established between sources of activity demand and the related costs. This association can benefit the distributor in determining where costs are being incurred, what is initiating the costs and where to apply efforts to curb inflationary costs. This can be of particular value in tracking new products or customers