Waterways Continuing Problem 10 (Part Level Submission)

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 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 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 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 Waterways accounts and their balances for the month of November 2016 follows.

>A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule.

WATERWAYS CORPORATION Cost of Goods Manufactured Schedule

For the Month of November 2016

>A list of accounts and their values are given above. From this information, prepare an income statement.

WATERWAYS CORPORATION Income Statement

Question- > A list of accounts and their values are given above. From this information, prepare the current assets section of the balance sheet for Waterways Corporation for the month of November 2016. (List Current Assets in order of liquidity.)

$275,000 54,000 260,000 16,800 2,400 42,000 16,800 10,200 68,800 72,550 48,000 1,600 Accounts Receivable Advertising Expenses Cash Depreciation-Factory Equipment Depreciation-office Equipment Direct Labor Factory Supplies Used Factory Utilities Finished Goods Inventory, November 30 Finished Goods Inventory, October 31 Indirect Labor Office Supplies Expense Other Administrative Expenses Prepaid Expenses Raw Materials Inventory, November 30 Raw Materials Inventory, October 31 Raw Materials Purchases Rent-Factory Equipment Repairs-Factory Equipment Salaries Sales Revenue Sales Commissions Work in Process Inventory, October 31 Work in Process Inventory, November 30 72,000 41,250 52,700 38,000 184,500 47,000 4,500 325,000 1,350,000 40,500 52,700 42,000 Cost of Goods Manufactured Schedule for the Month of November, 2016 Work in Process Inventory, November V 52700 Direct Materials Raw Materials inventory, November 1 38000 Raw Material Purchases 184500 E Total Raw Materials Available for Use 222500 LV Raw Materials Inventory, November 30 V 52700 Direct Materials used 169800 Direct Labor 42000 Manufacturing Overhead Indirect Labor 48000 Depreciation-actory Equipment 16800 Factory Supplies Used 16800 Factory Utities 10200 Rent-Factory Equipment 47000 Repairs --Factory Equipment 4500 Total Factory Overhead 143300 Total Manufacturing Costs 355100 Total Cost or Work in Process 407800 Work in Process Inventory, November 30 42000 Cast of Goods Manufactured 365800 For the Month of November, 2016 1350000 Cost of Goods Sold Finished Goods Triventory, November 1 72550 Cost of Goods Manufactured 365800 Cost of Goods Available for Sale V 438350 Finished Goods Inventory, November 30 BBDO Cost of Goods Sold 369550 Grass Profit 980450 Operating Expenses Selling Expense Advertising Expense 54000 Sales Commissions 40500 Total Selling Experts 94500 Administrative Expenses Depreciation-office Equipment 2400 Orice Supplies Expense 1600 HH1 1 Other Administrative Expenses 72000 Salaries 325000 Total Administrative Expenses 401000 Total Operating Expenses 495500 Net Income /(Loss) 484950 WATERWAYS CORPORATION Balance Sheet (partial) Assets