3-58 Cost of Goods Manufactured; Income Statement Norton Industries, a manuficturer 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: - Materials Inventory $23,000 - Work-in-Process Inventory $220,000 - Finished Goods Inventory $175,000 NORTON INDUSTRIES Preclosing Account Balances May 31 ( $000 omitted) Cash and marketable securities $54 Accounts and notes receivable 210 Direct Materials Inventory (April 30) 28 Work-in-Process Inventory (April 30) 150 Finished Goods Inventory (April 30) 247 Property, plant, and equipment (net) 1,140 Accounts, notes, and taxes payable 70 Bonds payable 582 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 1. Statement of cost of goods manufactured for Norton Industries for May. 2. Income statement for Norton Industries for May. (CMA Adapted)