SOLUTION
Chapter 1 Waterways Continuing Problem
a.
WATERWAYS
CORPORATION
Cost of Goods
Manufactured
Schedule
For the Month of
November, 2016
Less: Raw
materials
inventory 11/30
52,700
Direct materials
used
$169,800
Direct labor
42,000
Manufacturing
overhead
factory
equipment
16,800
Factory supplies
used
16,800
Factory utilities
Indirect labor
48,000
equipment
47,000
equipment
4,500
overhead
Total
Depreciation—
Work in process
Direct materials
inventory 11/1
purchases
184,500
Total raw
materials
available for use
manufacturing
costs
work in process
process 11/30
manufactured
WATERWAYS
CORPORATION
Income Statement
For the Month of
November, 2016
Sales
$1,350,000
Cost of goods sold
Gross profit
GrossProfit
980,450
Operating
expenses
Selling expenses
Advertising
expenses
54,000
Sales
commissions
40,500
Total selling
expenses
94,500
Administrative
expenses
office equipment
Office supplies
expense
administrative
expenses
325,000
Total administrative
expenses
401,000
inventory 11/1
manufactured
available for sale
goods inventory
11/30
68,800
Cost of goods sold
Total operating
WATERWAYS
CORPORATION
Balance Sheet
(partial)
November 30,
2016
Current assets
Cash
$260,000
Accounts
receivable
Inventories
inventory
inventory
inventory
Prepaid expenses
Total current
assets
$740,650