Waterways Corporation is a private corporation formed for the purpose of providing the products and the services
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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 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 run 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...............................................$ 275,000
Advertising Expenses..................................................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 Revenue......................................................1,350,000
Sales Commissions....................................................40,500
Work in Process Inventory, October 31...........................52,700
Work in Process Inventory, November 30.........................42,000
Instructor
(a) Based on the information given, construct an organizational chart of Waterways Corporation.
(b) A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule, an income statement, and a partial balance sheet for Waterways Corporation for the month of November.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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