Question

Question 1 View Policies Current Attempt in Progress 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 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 $272,500 53,500 261,600 16,800 2,300 42,200 17,000 10,100 69,400 72,200 48,500 1,500 72,100 41,600 53,100 38,200 182,800 47,500 4,500 327,300 1,348,900 40,600 52,700 42,200

Answer 1

1.Schedule of Cost of Goods Manufactured:-
Waterways Corporation
Cost of Goods Manufactured Schedule
For the Year Ended November 30
	Particulars
	Work in process Inventory, November 1			$    52,700
	Raw Materials inventory, November 1	$      38,200
Add:	Raw Materials Purchases	$    182,800
	Raw Materials available for use	$    221,000
Less:	Raw materials inventory, November 30	$      53,100
	Raw Materials used in production		$            167,900
	Direct Labor		$              42,200
Add:	Manufacturing Overheads
	Depreciation Expense - Factory Equipment	$      16,800
	Factory supplies used	$      17,000
	Factory utilities	$      10,100
	Indirect labor	$      48,500
	Rent - Factory Equipment	$      47,500
	Repairs - Factory equipment	$        4,500	$            144,400
	Total manufacuring costs			$ 354,500
	Total Work in Process during the period			$ 407,200
Less:	Work in process Inventory, November 30			$    42,200
	Cost of Finished Goods manufactured			$ 365,000

2. Income Statement:-
Income Statement
For the Year Ended December 31, 2017
	Sales Revenue		$           1,348,900
	Cost of Goods sold
	Beginning inventory of Finished Goods	$       72,200
Add:	Cost of Finished Goods manufactured	$     365,000
	Goods available for sale	$     437,200
Less:	Ending inventory of Finished Goods	$       69,400
	Cost of Goods sold		$            367,800
	Gross profit		$            981,100
	Operating Expenses
	Selling expenses
	Advertising Expenses	$      53,500
	Sales Commissions	$      40,600
	Total Selling expenses		$              94,100
	General and Administrative Expenses
	Depreciation Expense - Office Equipment	$        2,300
	Salaries	$    327,300
	Office Supplies expense	$        1,500
	Other Administrative expenses	$      72,100
	Total general and administrative expenses		$            403,200
Less:	Total operating expenses		$            497,300
	Income before taxes/ Net Income		$            483,800

Waterways Corporation
Balance Sheet (Partial)
as at November 30
Assets
Current Assets
	Cash			$   261,600
	Accounts receivable			$   272,500
	Inventory
	Raw materials		$               53,100
	Work in process		$               42,200
	Finished Goods		$               69,400	$   164,700
	Prepaid Expenses			$     41,600
	Total current assets			$   740,400

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