Norton Industries, a manufacturer of cable for the heavy construction industry, doses its books and prepares financial statements at the end of each month. The statement of cost of goods sold for April 2010 follows:
NORTON INDUSTRIES
Statement of Cost of Goods Sold
For the Month Ended April 30, 2010
($000 omitted)
Inventory of finished goods, March 31........................$50
Cost of goods manufactured....................................790
Cost of goods available for sale...............................$840
Less inventory of finished goods, April 30 247
Cost of goods sold..............................................$593
Additional Information
• Of the utilities, 80 percent relates to manufacturing the cable, the remaining 20 percent 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 percent is related to manufacturing the cable; the remaining 40 percent is related to the sales and administrative functions.
• Depreciation expense includes the following:
Manufacturing plant................................................520,000
Manufacturing equipment...........................................30, 000
Office equipment......................................................4,000
.........................................................................554, 000
• The company manufactured 7,825 tons of cable during May 2010.
• The inventory balances at May 31, 2010, follow:
• Direct materials inventory $23,000
• Work-in-process inventory $220,000
• Finished goods inventory $175,000
NORTON INDUSTRIES Preclosing Account Balances May 31, 2010 ($000 omitted)
Cash and marketable securities............................................................554
Accounts and notes receivable............................................................210
Direct materials inventory (4/30/2010)....................................................28
Work-in-process inventory (4/30/2010).................................................150
Finished goods inventory (4/30/2010)....................................................247
Property, plant, and equipment (net)..................................................1,140
Accounts, notes, and taxes payable.......................................................70
Bonds payable ..............................................................................600
Paid-in capital..............................................................................100
Retained earnings..........................................................................930
Sales.......................................................................................1,488
Sales discounts..............................................................................20
Other revenue.................................................................................2
Purchases of direct materials.............................................................510
Direct labor.................................................................................260
Indirect factory labor........................................................................90
Office salaries..............................................................................122
Sales salaries.................................................................................42
Utilities......................................................................................135
Rent.............................................................................................9
Property tax..................................................................................60
Insurance.....................................................................................20
Depreciation.................................................................................54
Interest expense...............................................................................6
Freight•in for materials purchases.........................................................15
Required
Based on Exhibit 3.15k prepare the following:
1 Statement of cost of goods manufactured for Norton Industries for May 2010.
2. Income statement for Norton Industries for May 2010.