Cost of Goods Manufactured; Income Statement Norton Industries, a manufacturer of cable fo...

Cost of Goods Manufactured; Income Statement 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.

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• All rent is for the office building.

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• Property taxes are assessed on the manufacturing plant.

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• Of the insurance, 60% is related to manufacturing the cable; the remaining 40% is related to the sales and administrative functions.

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• Depreciation expense includes the following:

• The company manufactured 7,825 tons of cable during May.

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• The inventory balances at May 31, follow:

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• Direct materials inventory $23,000

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• Work-in-process inventory $220,000

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• 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.

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2. Income statement for Norton Industries for May.

(CMA Adapted)

EXHIBIT 3.15A Income Statements for Manufacturing and Merchandising Companies