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 performs 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, perform 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 is 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 Helen 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. Teresa Totter is the vice president who heads the sales and marketing area; she oversees 10 well-trained salespeople. The accounting and finance division of the company is headed by Ann Headman, who is the chief financial officer (CFO) and a company vice president; she is a member of the Institute of Management Accountants and holds a certificate in management accounting. She has a small staff of 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 follows.

Accounts Receivable		$276,000
Advertising Expenses		53,500
Cash		259,600
DepreciationFactory Equipment		16,900
DepreciationOffice Equipment		2,400
Direct Labor		42,100
Factory Supplies Used		16,700
Factory Utilities		10,200
Finished Goods Inventory, November 30		68,700
Finished Goods Inventory, October 31		72,400
Indirect Labor		48,000
Office Supplies Expense		1,600
Other Administrative Expenses		71,300
Prepaid Expenses		41,000
Raw Materials Inventory, November 30		52,500
Raw Materials Inventory, October 31		38,100
Raw Materials Purchases		184,700
RentFactory Equipment		47,400
RepairsFactory Equipment		4,600
Salaries		328,200
Sales Revenue		1,358,600
Sales Commissions		40,300
Work In Process Inventory October 31		53,100
Work In Process Inventory, November 30		42,200

WATERWAYS CORPORATION Cost of Goods Manufactured Schedule