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
ˆ™ Of the utilities, 80% relates to manufacturing the cable; the remaining 20% relates to the sales and administrative functions.
ˆ™ All rent is for the office building.
ˆ™ Property taxes are assessed on the manufacturing plant.
ˆ™ Of the insurance, 60% is related to manufacturing the cable; the remaining 40% is related to the sales and administrative functions.
ˆ™ Depreciation expense includes the following:

Manufacturing plant.........................$20,000
Manufacturing equipment.................30,000
Office equipment..................................4,000
.............................................................$54,000

ˆ™ The company manufactured 7,825 tons of cable during May.
ˆ™ The inventory balances at May 31, follow:
ˆ™ Materials Inventory $23,000
ˆ™ Work-in-Process Inventory $220,000
ˆ™ 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.

Transcribed Image Text:

NORTON INDUSTRIES Statement of Cost of Goods Sold For the Month Ended April 30 ($000 omitted) $ 50 Finished Goods Inventory, March 31 Cost of goods manufactured Cost of goods available for sale Less: Finished Goods Inventory, April 30 Cost of goods sold 790 $840 247 $593 NORTON INDUSTRIES Preclosing Account Balances May 31 ($000 omitted) Cash and marketable securities $ 54 Accounts and notes receivable 210 Direct Materials Inventory (April 30) Work-in-Process Inventory (April 30) Finished Goods Inventory (April 30) Property, plant, and equipment (net) Accounts, notes, and taxes payable Bonds payable Paid-in capital 28 150 247 1,140 70 600 100 Retained earnings 930 Sales 1,488 Sales discounts 20 Other revenue Purchases of direct materials 510 Direct labor 260 Indirect factory labor Office salaries 90 122 Sales salaries 42 Utilities 135 Rent Property tax Insurance 60 20 Depreciation Interest expense 54 6. Freight-in for materials purchases 15