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Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial products, and

Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial products, 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 month of November has just ended and Waterways needs to generate a cost of goods manufactured and cost of goods sold for its income statement for the month. The following data is provided:

Accounts Receivable

$ 275,000

Advertising Expense

54,000

Cash

260,000

Depreciation Factory Equipment

16,800

Depreciation Office 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

Rent Factory Equipment

47,000

Repairs Factory Equipment

4,500

Salaries

325,000

Sales

1,350,000

Sales Commissions

40,500

Work In Process Inventory November 30

52,700

Work In Process Inventory October 31

42,000

Property Tax on Factory

5,500

Instructions:

From the above information, prepare a cost of goods manufactured schedule, an income statement, and the current asset section of the balance sheet for Waterways Corporation for the month of November.

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