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)

Transcribed Image Text:

Norton Industries Statement of Cost of Goods Sold For the Month Ended April 30 (S000) omitted Inventory of finished goods, March 31 Cost of goods manufactured Cost of goods available for sale Less inventory of finished goods, Apri 30 Cost of goods sold S 50 790 840 247 S 593 Direct materials inventory Work-in-Process inventory Finished goods inventory $23,000 220,000 175,000 Manufacturing plant Manufacturing equipment Office equipment S20,000 30,000 4.000 S54.000 Norton Industries Preclosing Account Balances May 31 (S000) omitted S 54 210 28 150 247 1,140 70 600 100 930 1,488 20 Cash and Marketable securities Accounts and notes receiv Direct materials inventory (April 30) Work-in-process inventory (April 30) Finished goods inventory (Apri 30) Property, plant, and equipment (net) Accounts, notes, and taxes payable Bonds Payable Paid-in capital Retained earningsS Sales Sales discounts Other revenue Purchases of direct materials Direct Labor Indirect factory labor Office salaries Sales salaries Utilities Rent Property tax Insurance Depreciation Interest expense Freight-in for materials purchases 510 260 90 122 42 135 60 20 54 15