Norton Industries, a manufacturer of cable for the heavy construction industry, closes its books and prepares financial
Question:
Norton Industries, a manufacturer of cable for the heavy construction industry, closes its books and prepares financial statements at the end of each month. The statement of cost of goods sold for April follows:
Additional Information
• Of the utilities, 80% relates to manufacturing the cable; the remaining 20% relates to the sales and administrative functions.
• All rent is for the office building.
• Property taxes are assessed on the manufacturing plant.
• Of the insurance, 60% is related to manufacturing the cable; the remaining 40% is related to the sales and administrative functions.
• Depreciation expense includes the following:
• The company manufactured 7,825 tons of cable during May.
• The inventory balances at May 31, follow:
• Direct materials inventory $23,000
• Work-in-process inventory $220,000
• Finished goods inventory $175,000
Required
Based on Exhibit 3.15A, prepare the following:
1. Statement of cost of goods manufactured for Norton Industries for May.
2. Income statement for Norton Industries for May. (CMA Adapted)
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins