19-1
SOLUTION
Chapter 19 Waterways Continuing Problem
19-2
(b)
Waterways Corporation
Cost of Goods Manufactured Schedule
For the Month of November
Work in process 11/1
$ 52,900
Direct materials
Raw materials inventory 11/1
$ 38,000
Raw material purchases
185,400
Total raw materials available for use
223,400
Manufacturing overhead
Depreciation—factory equipment
16,800
Factory supplies used
16,850
Factory utilities
10,200
Indirect labor
48,000
Rent—factory equipment
47,000
Repairs—factory equipment
4,200
Total factory overhead
Total manufacturing costs
Total cost of work in process
Less: Work in process 11/30
Cost of goods manufactured
$346,650
Less: Raw materials inventory 11/30
52,700
Direct materials used
19-3
Waterways Corporation
Income Statement
For the Month of November
Sales
$1,350,000
Cost of goods sold
Finished goods inventory 11/1
$ 72,550
Cost of goods manufactured
346,650
Gross profit
999,100
Operating expenses
Selling expenses
Advertising expenses
54,000
Sales commissions
40,500
Total selling expenses
94,500
Administrative expenses
Depreciation—office equipment
$ 2,500
Office supplies expense
Other administrative expenses
Salaries
Total administrative expenses
400,900
Total operating expenses
495,400
Net income
Cost of goods available for sale
419,200
Less: Finished goods inventory 11/30
68,300
Cost of goods sold
350,900
19-4
Waterways Corporation
Balance Sheet (partial)
November 30
Current assets
Cash
$260,000
Accounts receivable
295,000
Inventories
Raw materials inventory
Work in process inventory
Finished goods inventory
Total current assets
$759,250