3 Check my work 10 points Skipped Problem 3-58 (Algo) Cost of Goods Manufactured; Income Statement [LO 3-4] 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 Cost of goods manufactured eBook Cost of goods available for sale Print Less: Finished goods inventory, April 30 Cost of goods sold Additional Information $ 39 690 $ 729 301 $ 428 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 Manufacturing equipment Office equipment $ 19,200 28,800 9,000 $ 57,000 The company manufactured 7,610 tons of cable during May. The inventory balances at May 31, follow: Materials Inventory $41,000 Work-in-Process Inventory $274,000 Finished Goods Inventory $247,000 NORTON INDUSTRIES Preclosing Account Balances May 31 ($000 omitted) Cash and marketable securities Accounts and notes receivable 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 Retained earnings 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 $ 58 210 46 186 301 1,150 70 520 80 1,000 1,889 30 2 600 368 126 158 78 185 27 96 35 57 11 33 Freight-in for materials purchases 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.