Waterways Chapter 19 Instructions For This Assignment
Instructions Waterways Chapter 19 for This Assignment You Will Apply
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.
Instructions: Based on the information given, construct an organizational chart of the Waterways Corporation. You may create the organizational chart in Microsoft Word or Excel. Additionally, prepare a cost of goods manufactured schedule, an income statement, and a partial balance sheet for November using Excel. If you choose to create the organizational chart in Word, submit both a Word document (with the chart) and an Excel document (with financial schedules). If you elect to create the organizational chart in Excel, submit only an Excel document including all components of the assignment.
Paper For Above instruction
Waterways Corporation, a private company specializing in irrigation products and related services, exemplifies a well-structured manufacturing and service organization. In this paper, we will first construct an organizational chart, followed by preparing a schedule for the cost of goods manufactured, an income statement, and a partial balance sheet for the month of November, based on the provided financial data.
Organizational Chart
The organizational structure of Waterways Corporation reflects a typical hierarchy in manufacturing firms, segmented into functional areas. At the top is the President and CEO, Will Winkman, who provides strategic direction and oversees the entire operation. Reporting directly to him are vice presidents managing different critical functions: Ben (Vice President of Design and Production), Teresa (Vice President of Sales and Marketing), Sally (Vice President of Human Resources), Henry (Vice President of Installation and Training Division), and Ann (Chief Financial Officer).
Ben oversees the design and production divisions, which include a factory managed by Todd Senter. The factory houses managers for different production lines and supervises raw material procurement and manufacturing processes. Helen Hines manages the purchasing department, responsible for raw material acquisition.
Henry manages the installation division, which covers six local operations, each led by local managers who employ service personnel trained centrally but operating locally. Sally manages administrative functions like employee paperwork, supporting the operational staff. Teresa oversees the sales force, which includes ten salespeople responsible for marketing and customer acquisition.
The financial division under Ann includes staff responsible for financial records, control, treasury, and reporting activities. This structure fosters specialization and clear lines of authority, necessary for efficient operations in a growing company.
Cost of Goods Manufactured Schedule
| Details | Amount |
|---|---|
| Raw Materials Inventory, Beginning | $38,000 |
| Purchases of Raw Materials | $184,500 |
| Raw Materials Available for Use | $222,500 |
| Less: Raw Materials Inventory, Ending | $52,700 |
| Raw Materials Used in Production | $169,800 |
| Direct Labor | $42,000 |
| Manufacturing Overhead: | |
| Factory Equipment Depreciation | $16,800 |
| Factory Supplies Used | $16,800 |
| Factory Utilities | $10,200 |
| Factory Rent | $47,000 |
| Factory Repairs | $4,500 |
| Indirect Labor | $48,000 |
| Total Manufacturing Overhead | $143,500 |
| Total Manufacturing Costs | $227,500 |
| Beginning Work in Process Inventory | $52,700 |
| Less: Ending Work in Process Inventory | $42,000 |
| Cost of Goods Manufactured | $238,200 |
Income Statement for November
| Revenue and Expenses | Amount |
|---|---|
| Sales Revenue | $1,350,000 |
| Cost of Goods Sold | $238,200 |
| Gross Profit | $1,111,800 |
| Operating Expenses: | |
| Advertising Expenses | $54,000 |
| Office Supplies Expense | $1,600 |
| Other Administrative Expenses | $72,000 |
| Salaries Expense | $325,000 |
| Sales Commissions | $40,500 |
| Total Operating Expenses | $493,600 |
| Operating Income | $618,200 |
| Depreciation – Factory Equipment | $16,800 |
| Depreciation – Office Equipment | $2,400 |
| Interest and Other Expenses (if any) | — |
| Total Expenses | $512,000 |
| Net Income | $106,200 |
Partial Balance Sheet as of November 30
| Assets | Amount |
|---|---|
| Cash | $260,000 |
| Accounts Receivable | $275,000 |
| Prepaid Expenses | $41,250 |
| Raw Materials Inventory | $52,700 |
| Work in Process Inventory | $42,000 |
| Finished Goods Inventory | $68,800 |
| Total Assets | $739,750 |
| Liabilities and Equity | Amount |
| Accounts Payable (estimated from typical operations) | — |
| Retained Earnings (from net income) | $106,200 |
| Total Liabilities and Equity | $739,750 |
Conclusion
The organizational structure, operational costs, and financial performance of Waterways Corporation reflect an efficient manufacturing entity with clear management roles and detailed cost tracking. The financial statements constructed herein aid in analyzing the company’s profitability and operational efficiency for November. Properly understanding these financial facets supports strategic decision-making and continuous growth in competitive markets.
References
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