Instructions: Waterways Chapter 19 For This Assignment
Instructionswaterways Chapter 19for This Assignment You Will Apply
Waterways Chapter 19for This Assignment You Will Apply Instructions Waterways (Chapter 19) For this assignment, you will apply what you have learned from the unit lesson and required unit resources. The Waterways (WP19) case is located on page 19-39 of the textbook. 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 is itemized below: 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 $68,800; Finished Goods Inventory, October $72,550; Indirect Labor $48,000; Office Supplies Expense $1,600; Other Administrative Expenses $72,000; Prepaid Expenses $41,250; Raw Materials Inventory, November $52,700; Raw Materials Inventory, October $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 $52,700; Work in Process Inventory, November $42,000. Using this information, the assignment tasks include constructing an organizational chart of Waterways Corporation, preparing a cost of goods manufactured schedule, an income statement, and a partial balance sheet for November. The organizational chart can be created in Microsoft Word or Excel, and the financial statements in Excel. Submit both a Word document (for the chart) and an Excel document (for the schedules and statements) if Word is used for the chart; if Excel is used for the chart, only submit one Excel file containing all components. APA formatting is not required.
Paper For Above instruction
Waterways Corporation exemplifies a typical manufacturing and service organization with a complex structure that supports its mission to produce high-quality irrigation products while conserving water. Its organizational hierarchy, financial activities, and operational divisions are structured to facilitate growth, efficiency, and customer satisfaction. This paper will detail the creation of an organizational chart, a cost of goods manufactured schedule, an income statement, and a partial balance sheet for November, based on provided data and corporate descriptions.
Organizational Structure of Waterways Corporation
The organizational structure of Waterways Corporation is designed to delineate clear lines of authority and responsibility across various departments. At the top is Will Winkman, the President and CEO, responsible for overall strategic direction and corporate oversight. Reporting directly to him are key vice presidents overseeing critical functions.
- Ben Winkman, Vice President of Design and Production, supervises all stages of product design and manufacturing, including the factory operations managed by Todd Senter.
- Todd Senter, Factory Manager, oversees all manufacturing activities related to parts production and factory operations.
- Helen Hines, Purchasing Department Manager, responsible for procurement of raw materials essential for manufacturing.
- Henry Writer, Vice President of Installation and Training, supervises managers of six local installation divisions and their service teams.
- Sally Fenton, Vice President of Human Resources, manages employee-related administrative functions.
- Teresa Totter, Vice President of Sales and Marketing, overseeing a team of 10 salespeople and marketing initiatives.
- Ann Headman, CFO, manages the accounting and finance division, including staff handling financial records, reporting, and analysis.
This hierarchical structure ensures that operational, financial, and marketing functions are aligned with organizational goals and facilitate the swift flow of information and resources within the company.
Cost of Goods Manufactured Schedule
The cost of goods manufactured (COGM) schedule calculates the total production costs associated with the manufacturing process during November.
| Direct Materials: | ||
|---|---|---|
| Beginning Raw Materials Inventory (October) | $38,000 | |
| Add: Raw Materials Purchases | $184,500 | |
| Less: Ending Raw Materials Inventory (November) | $52,700 | |
| Raw Materials Used in Production | $169,800 |
Adding manufacturing overhead and direct labor costs, and considering changes in work in process inventory, the total manufacturing costs for November can be summarized as follows:
| Total Raw Materials Used | $169,800 |
|---|---|
| Direct Labor | $42,000 |
| Factory Overhead: |
|
| Total Manufacturing Overhead | $143,100 |
| Total Manufacturing Costs | $224,100 |
Adjusting for beginning and ending work in process inventory ($52,700 and $42,000 respectively), the cost of goods manufactured (COGM) is calculated as:
Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory = COGM
That is: $52,700 + $224,100 - $42,000 = $234,800
Income Statement for November
The income statement summarizes revenues and expenses, providing the net income for the period.
| Revenue | $1,350,000 |
|---|---|
| Cost of Goods Sold (COGS) | $234,800 |
| Gross Profit | $1,115,200 |
| Operating Expenses: | |
| Advertising Expenses | $54,000 |
| Sales Commissions | $40,500 |
| Administrative Expenses (Office Supplies & Others) | $73,600 |
| Depreciation - Office Equipment | $2,400 |
| Total Operating Expenses | $170,000 |
| Net Income | $945,200 |
Partial Balance Sheet as of November
| Assets | Amount |
|---|---|
| Cash | $260,000 |
| Accounts Receivable | $275,000 |
| Raw Materials Inventory | $52,700 |
| Finished Goods Inventory | $68,800 |
| Work in Process Inventory | $42,000 |
| Prepaid Expenses | $41,250 |
| Total Assets | $739,750 |
Liabilities and Equity sections would include accounts payable, accrued expenses, and owner's equity, but are not provided explicitly in the data. The partial balance sheet includes key asset accounts for November. Together, these financial reports, coupled with the organizational chart, provide a comprehensive overview of Waterways Corporation's operational and financial health during November.
Conclusion
This analysis demonstrates how organizational structure and financial data interplay within a manufacturing firm like Waterways Corporation. The hierarchical chart clarifies reporting lines, while the financial schedules depict operational efficiency and profitability. Such integrated assessments support strategic decisions, enhance operational control, and facilitate communication among stakeholders.
References
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