Waterways was founded by Will Winkman who is the company president and chief executive officer (CEO). Working with him from the company's inception is 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 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 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. 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 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 $272,600 54,600 261,500 16,700 2,500 42,300 16,600 10,100 69,500 73,200 48,200 1,600 72,700 41,100 52,800 38,300 184,700 47,400 4,500 326,200 1,341,400 40,900 53,200 42,300 WATERWAYS CORPORATION Cost of Goods Manufactured Schedule For the Month of November, 2016 Work in Process Inventory, November 14 $ 52,800 Direct Materials Raw Materials Inventory, November 14 38,300 Raw Material Purchases 184,700 233000 Total Raw Materials Available for Use Less: Raw Materials Inventory, November 30 52,800 i Direct Materials Used $ 275,800 Direct Labor 42,300 Accounts Receivable Depreciation-Factory Equipment 16,700 Factory Supplies Used 16,600 Factory Utilities 10,100 Indirect Labor 48,200 Rent-Factory Equipment 47.400 Repairs-Factory Equipment 4,500 143,500 Total Factory Overhead Total Manufacturing Costs 461600 Total Cost of Work in Process 514400 Less : Work in Process Inventory, November 304 42,300 Cost of Goods Manufactured $ 556700 WATERWAYS CORPORATION Income Statement For the Month of November, 2016 Sales Revenue 1,341,400 Cost of Goods Sold Finished Goods Inventory, November 1 73,200 Cost of Goods Manufactured 566700 Cost of Goods Available for Sale 629900 Less: Finished Goods Inventory, November 30 69,500 Cost of Goods Sold 560400 Gross Profit 781,000 Operating Expenses Selling Expenses Advertising Expenses 54,600 i Sales Commissions 40,900 i Total Selling Expenses 95500 i Administrative Expenses Depreciation-Office Equipment 2,500 i Office Supplies Expense 1,600 i Salaries 326,200 i Other Administrative Expenses 72,700 i Total Administrative Expenses 403,000 Total Operating Expenses 498,500 Net Income /(Loss) 997,000