Question

Waterways Problem 01 b1-b3 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 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 $273,400 Advertising Expenses 54,400 Cash 262,200 Depreciation—Factory Equipment 16,700 Depreciation—Office Equipment 2,500 Direct Labor 42,400 Factory Supplies Used 16,900 Factory Utilities 10,300 Finished Goods Inventory, November 30 68,600 Finished Goods Inventory, October 31 72,700 Indirect Labor 47,600 Office Supplies Expense 1,500 Other Administrative Expenses 72,200 Prepaid Expenses 41,500 Raw Materials Inventory, November 30 52,500 Raw Materials Inventory, October 31 38,300 Raw Materials Purchases 183,400 Rent—Factory Equipment 47,300 Repairs—Factory Equipment 4,500 Salaries 325,800 Sales Revenue 1,339,600 Sales Commissions 40,700 Work In Process Inventory October 31 53,300 Work In Process Inventory, November 30 42,300

Your answer is partially correct. Try again. A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule. B  prepare an income statement for the month of November C prepare a partial balance sheet for Waterways Corporation for the month of November

Answer 1

A) Cost of goods manufactured

Beginning work in process			$53,300
Raw material consumed
Beginning raw material	$38,300
Add : raw material purchase	$183,400
Less : Ending raw material	($52,500)
Raw material consumed		$169,200
DIrect labour		$42,400
Factory overhead
Factory supplies used	$16,900
Factory utilities	$10,300
Depreciation factory equipment	$16,700
Indirect labor	$47,600
Rent factory equipment	$47,300
Repairs factory equipment	$4,500
Total manufacturing overhead		$143,300
Total manufacturing cost			$354,900
Less : Ending work in process			($42,300)
Cost of goods manufactured			$365,900

B) Income statement

Sales revenue		$1,339,600
Cost of goods sold
Beginning finished goods inventory	$72,700
Cost of goods manufactured	$365,900
goods available for sale	$438,600[$72,700+$365,900]
Less : ending finished goods inventory	($68,600)
Cost of goods olsld		($370,000)
Gross profit		$969,600 [$1,339,600-$370,000]
Less : advertising expenses	($54,400)
Less : selling commission	($40,700)
Less : depreciation on office equipment	($2,500)
Less : office supplies used	($1,500)
Less : other administrative exp	($72,200)
Less : Salaries exp	($325,800)	($497,100)
Net income		$472,500

3.Partial Balance sheet

ASSETS
Current assets
Cash		$262,200
Account receivable		$273,400
Prepaid exp		$41,500
Inventory:
Raw material	$52,500
Work in process	$42,300
Finished goods	$68,600	$163,400 [$52,500+$42,300+$68,600]
Total current assets		$740,500[$262,200+$273,400+$41,500+$163,400]