Waterways Continuing Problem WCP14 Waterways Corporation is a private corporatio
ID: 2570673 • Letter: W
Question
Waterways Continuing Problem WCP14 Waterways Corporation is a private corporation formed for the purpose of providing the pro and the services needed to irrigate farms, parks, commercial projects, and private homes. It centrally located factory in a U.S. city that manufactures the products it markets to retail outlets nation. It also maintains a division that provides installation and warranty servicing in six m areas has across The mission of Waterways is to manufacture quality parts that can be used for effective water. By that effort, the company hopes to satisfy its customers projects that also conserve rapid a nd responsible service, and serve the community and the employees who represent them in each The company has been growing rapidly, so management is considering new ideas to help 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 was 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 Hector 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 Writers 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. Sam Totter is the vice president who heads the sales and marketing area; he oversees 10 well-trained The accounting and finance division of the company is headed by Abe Headman, who is the chief financial officer (CFO) and a company vice president; he is a member of the Institute of Management Accountants and holds a certificate in management accounting. He has a small staff of Certified Public 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 2012 follows Accounts Receivable $ 275,000 54,000 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 Raw Materials Inventory, October 31 Raw Materials Purchases Rent-Factory Equipment Repairs Factory Equipment 16,800 2.400 42,000 16,800 10,200 68,800 72,550 48,000 1,600 72,000 41,250 52,700 Materials Inventory, November 30 184.500 47,000 4,500 325,000 1,350,000 40,500 52,700 Salaries Sales Commissions Work In Process Inventory October 31 Work In Process Inventory, November 30
Explanation / Answer
Waterways Corporation Cost of Good Manufacturing Schedule For the Month Ended November 30, 2016 Work in Process, 11/1 $52,700 Direct materials Raw materials inventory, 11/1 $38,000 Raw materials purchases 184,500 Total raw materials available for use 222,500 Less: Raw materials inventory, 11/30 52,700 Direct materials used $169,800 Direct Labor 42,000 Manufacturing Overhead Depreciation - Factory equipment 16,800 Factories supply used 16,800 Factory utilities 10,200 Indirect labor 48,000 Rent - Factory equipment 47,000 Repairs - Factory equipment 4,500 Total manufacturing overhead 143,300 Total manufacturing cost 355,100 Total cost of work in progress 407,800 Less: Work in process, 11/30 42,000 Cost of goods manufactured $365,800 WATERWAYS CORPORATION Income Statement For The Month Of November, 2016 Sales 1,350,000 Cost of Goods Sold Finished goods inventory, 11/1 72,550 Cost of goods manufactured 365,800 Cost of goods available for sale 438,350 Less: Finished goods inventory, 11/30 (68,800) Cost of Goods Sold 369,550 Gross Profit 980,450 Operating expenses Selling expenses Advertising expenses $ 54,000 sales commissions 40,500 Total selling expenses $ 94,500 Administrative expenses Depreciation - office equipment 2,400 Office supplies expense 1,600 Other administrative expenses 72,000 Salaries 325,000 Total administrative expenses 401,000 Total operating expenses 495,500 Net Income 484,950 Waterways Corporation Balance Sheet (partial) 30-Nov-16 Current assets Cash $260,000 Account Receivable 275,000 Inventories Raw materials 52,700 Work in process 42,000 Finished goods 68,800 163,500 Prepaid expenses 41,250 Total current assets $739,750
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.