Question

Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial products, and private homes. 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 provides installation and warranty servicing in six metropolitan areas. The month of November has just ended and Waterways needs to generate a cost of goods manufactured and cost of goods sold for its income statement for the month. The following data is provided:

Accounts Receivable	$ 275,000
Advertising Expense	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 30	68,800
Finished Goods Inventory – October 31	72,550
Indirect Labor	48,000
Office Supplies Expense	1,600
Other Administrative Expenses	72,000
Prepaid Expenses	41,250
Raw Materials Inventory – November 30	52,700
Raw Materials Inventory – October 31	38,000
Raw Materials Purchases	184,500
Rent – Factory Equipment	47,000
Repairs – Factory Equipment	4,500
Salaries	325,000
Sales	1,350,000
Sales Commissions	40,500
Work In Process Inventory – November 30	52,700
Work In Process Inventory – October 31	42,000
Property Tax on Factory	5,500

Instructions:

From the above information, prepare a cost of goods manufactured schedule, an income statement, and the current asset section of the balance sheet for Waterways Corporation for the month of November.