I need some help on a problem, I am just a little confused about how to answer this problem. I am having trouble figuring how to do this problem.

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:

NORTON INDUSTRIES Statement of Cost of Goods Sold For the Month Ended April 30 ($000 omitted)

Finished goods inventory, March 31 $ 34

Cost of goods manufactured 800

Cost of goods available for sale $ 834

Less: Finished goods inventory, April 30 274

Cost of goods sold $ 560

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:

Manufacturing plant $ 20,500

Manufacturing equipment 31,500

Office equipment 3,000

$ 55,000

The company manufactured 7,620 tons of cable during May.

The inventory balances at May 31, follow:

Materials Inventory $32,000

Work-in-Process Inventory $247,000

Finished Goods Inventory $211,000

NORTON INDUSTRIES Preclosing Account Balances May 31 ($000 omitted)

Cash and marketable securities $ 57

Accounts and notes receivable 190

Direct materials inventory (April 30) 37

Work-in-process inventory (April 30) 168

Finished goods inventory (April 30) 274

Property, plant, and equipment (net) 1,280

Accounts, notes, and taxes payable 60

Bonds payable 560

Paid-in capital 100

Retained earnings 1,000

Sales 1,681

Sales discounts 20

Other revenue 2

Purchases of direct materials 555

Direct labor 314

Indirect factory labor 108

Office salaries 140

Sales salaries 60

Utilities 140 Rent 18

Property tax 78

Insurance 40

Depreciation 55

Office supplies expense 15

Freight-in for materials purchases 24

Required:

1. Prepare a statement of cost of goods manufactured for Norton Industries for May.

2. Prepare an income statement for Norton Industries for May.